PARIS: Euronext wheat was higher on Wednesday as strong export demand kept physical prices firm in Europe, while fresh highs for US corn and soybean futures lent support to wheat.
March milling wheat, the most active contract on Paris-based Euronext, settled up 1.50 euros, or 0.7%, at 210.75 euros ($250.10) a tonne.
Wheat was again underpinned by the ongoing rally in corn and soybeans, driven in turn by strong Chinese demand and concerns over dry conditions in South American growing belts.
In Chicago, soybeans hit a new four-year high and corn a fresh one-year peak.
While wheat futures were seen following corn and soy, physical wheat markets in Europe remained firm because of a run of exports, with French and German export premiums holding onto recent gains, traders said.
France could sell another million tonnes of wheat to China in the second half of 2020/21, on top of 1.6 million expected in the first half of the season, absorbing much of a limited French export surplus after this summer's harvest, trading firm Lecureur said on Wednesday.
In Germany, standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale unchanged at about 3.5 euros over Paris December.
Buyers were seeking around 2.5 euros over Paris.
"Strong export flows continue from Germany with wheat being brought from points further inland to support the busy programme of ships loading for export," one German trader said.
"Yet another big tender closed today, with Pakistan seeking 400,000 tonnes and the EU looks like having a decent chance of supplying a good part of any purchase."
Mild weather was helping winter cereal crops in Germany as sowing wound down, the trader added.
In France, optimal sowing conditions could let the soft wheat area for next year's crop rebound to 5.1-5.2 million hectares, Lecureur said. -Reuters
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