PARIS: Euronext wheat rose to its highest in almost three weeks on Tuesday as reduced US government forecasts for corn and soybean supply fuelled a broad rally in grain markets.
December milling wheat on Paris-based Euronext settled up 2.75 euros, or 1.3%, at 212.00 euros ($250.56) a tonne, after reaching its highest since Oct. 21 at 212.50 euros in late trade.
US corn and soybean futures climbed over 3% after the US Department of Agriculture cut its forecasts of US and world corn and soybean supplies by more than analysts had expected on average.
The USDA’s projection of world wheat stocks this season was in line with expectations, but wheat prices tracked the rally in corn and soy.
Euronext had traded slightly higher before the USDA report, supported by a backdrop of brisk export demand.
Algeria, the largest overseas market for European Union wheat, announced a new import tender, with a bidding deadline on Thursday, traders said.
In Germany, standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at about 2 euros over Paris December, up from 1.5 euros over on Monday.—Reuters