PARIS: Paris wheat futures edged higher on Wednesday as brisk overseas demand underpinned the European market in the face of wider investor uncertainty over a tight US presidential election and coronavirus lockdown measures. Front-month December milling wheat on Paris-based Euronext settled 1.50 euros, or 0.7%, higher at 206.75 euros ($242.29) a tonne.
Paris futures outperformed US wheat, which eased as a tense vote count in the closer-than-expected US presidential election curbed prices.
"There is uncertainty with the US election and whether there could be a lockdown in the US like in Europe," a French broker said. However, latest tenders by importing countries have added to steady international demand, while strong French shipments to China have raised the prospect of tight supply in France following a small harvest.
"Farmers offloaded grain last month when they saw prices above 200 euros but there's not much left to sell," a French broker said. "There's concern among buyers and physical premiums are holding firm."
During a volatile October, wheat markets struck multiyear highs before a month-end slide triggered by rain relief for US and Russian growing belts and investor worries about latest coronavirus lockdowns.
Financial investors trimmed their net long position in Euronext's wheat futures and options last week, data from the exchange showed. There were bigger price moves in oilseed markets, with doubts about soyabean harvest prospects in the Americas and palm oil production in Malaysia, plus strong Chinese demand supporting a rally.
On Euronext, front-month February rapeseed rose as much as 9 euros, or 2.3%, to 398.25 euros, just shy of a contract high of 398.50 euros. It settled at 396.25 euros. Euronext data for October showed the traded volume of commodity futures and options - mostly wheat - rose 46.6% compared with September and 58.8% versus October last year.
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