PARIS: European wheat rose to a one-month high on Tuesday, boosted by concerns that adverse weather in the United States could hurt corn sowings, while traders were monitoring cold and expected dry weather in Europe.
Most traded September milling wheat on Paris-based Euronext, closed 1.6% higher at 202.00 euros a tonne.
The US Department of Agriculture said US farmers were able to plant 4% of their intended corn acreage as of Sunday, below the range of analysts’ estimates in a Reuters poll.
Forecasts of more cold weather in France and dry weather in some parts of Europe also had to be monitored, traders said.
France’s spring crop area is forecast to fall back from 2020’s high levels, while soft wheat sowings will rebound from a rain-hit campaign last year, the farm ministry said on Tuesday, citing forecasts made before the recent severe cold snap.
In Germany, lack of overseas demand, despite export taxes imposed by rival Russia, depressed sentiment.
“Importer demand is slack with the number of tenders in the market this week modest,” one German trader said. “The Ramadan month is starting which traditionally can reduce purchasing activity by important Middle Eastern and North African customers for EU wheat.”
Some dealers were watching for indications of how aggressive Russian traders will start offering new crop Russian wheat in international markets in the face of export taxes designed to hinder selling. But improved estimates of this summer’s Russian wheat crop open prospects of larger Russian supplies.
“The big question for me is how aggressively the Russians make advance sales of their new crop in coming weeks and if they manage to sell despite the export taxes,” the trader added.
“This could encourage importers to delay buying in the hope larger Russian supplies will depress prices.”
Standard 12% protein wheat for April delivery in Hamburg was offered for sale at around 2 euros over Paris May against 3 euros over on Monday, in thin trading.
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