PARIS: Euronext wheat edged higher in late trade on Tuesday, supported by ongoing short-covering in front-month futures, while traders assessed risks to crops from cold spells in US and European wheat belts. Prices held near recent highs as steady export demand and tight feed grain supply were expected to continue eroding wheat stocks.
May milling wheat, now the most active contract on Paris-based Euronext, closed 0.1% higher at 229.50 euros ($278.82) a tonne. The contract earlier equalled Monday’s one-month high of 229.75 euros but again failed to breach resistance at 230 euros.
March futures were up 0.4% at 240.50 euros. They had surged on Friday to 242.75 euros, the highest front-month price since May 2013, as market participants covered open positions in the run-up to the contract’s expiry.
Euronext rapeseed saw sharper price moves on Tuesday, with front-month May futures closing up 2.4% at 472.00 euros, after touching 474.00 euros in earlier trade, the highest front-month price since April 2013.
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