PARIS: Euronext wheat fell on Wednesday, retreating from an earlier two-week high as Chicago futures tumbled in a round of profit-taking before a US holiday closure. Chart resistance, a near three-month high for the euro against the dollar and an increased forecast for Russian exports also curbed Euronext prices.
March milling wheat, the most active contract on the Paris-based Euronext exchange, settled down 2.25 euros, or 1.1%, at 209.50 euros ($249.66) a tonne. It earlier rose to 212.75 euros, a new two-week high that equalled the contract's highest level so far.
A sharp pullback in Chicago, where wheat lost around 3% after earlier touching a near three-week high, then pressured Paris prices in afternoon trading. Wheat futures had rallied on Tuesday with support from an unexpected decline in weekly US crop ratings, but traders said the run-up to Thursday's US Thanksgiving holiday triggered some precautionary selling.
Physical grain premiums in France held firm as Chinese demand continued to absorb a large part of a reduced French surplus this year.
"If futures see a correction, physical premiums are likely to stay strong," a French trader said. "Demand remains dynamic."
In Germany, export optimism again kept Hamburg prices well over Paris levels. Standard bread wheat with 12% protein for December delivery in Hamburg was offered for sale unchanged at about 4.5 euros over Paris March. Buyers were offering about 3 euros over.
"Big export ship loadings in German ports are expected to continue into December and into January/February 2021," one German trader said.
"Sellers are unwilling to follow the dips in Paris prices."
Financial investors reduced their net long position in Euronext's milling wheat futures and options for a fourth straight week in the week to Nov. 20, Euronext data showed.
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