PARIS: Euronext wheat climbed further on Thursday, again buoyed by rising corn prices that raised the prospect of additional demand for wheat. Worries over drought in Brazilian corn-growing regions drew attention away from beneficial rain for some European wheat belts, including dry French plains, traders said.
September milling wheat on Euronext settled 4 euros, or 1.8%, higher at 230.25 euros a tonne, as it moved back towards last week’s life-of-contract peak of 233.50 euros. Euronext wheat again saw adjustments ahead of Monday’s expiry of May futures. The front-month contract settled 2% higher at 253.50 euros.
Chicago corn rose to a new eight-year peak.
“Corn remains the driver for the global wheat market,” British merchant ADM Agriculture said in a note.
Corn influences wheat as both cereals are used in livestock rations, and increasingly expensive and scarce corn supplies have raised expectations of extra use of wheat.
“Wheat is set to be competitive in feed up to October and the corn harvest,” a French trader said.
In Germany, traders also cited end-of-season export demand for milling wheat.
“Large shipments of German wheat are expected to be made in May for Algeria, which is dominating German wheat exports this season,” a German trader said.
“But shipments to Iran and Nigeria are also expected.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 4.5 euros under Paris December. Buyers were seeking 5 euros under.
Forecasts of widespread rain this week and next in western Europe were easing concern about crops after a dry April, although warmer temperatures were also needed, traders said.
“Good volumes of rain fell again in Germany today and more is forecast up to Friday evening, which is what wheat plants need,” the German trader added.
In rapeseed, August futures set a new contract high at 541.75 euros a tonne, before settling at 540.50 euros, up 3.5%.