PARIS: Euronext wheat rose on Thursday, recovering from a four-week low the previous day, as strength in corn prices offset pressure from favourable crop conditions for northern hemisphere wheat.
September milling wheat on Euronext settled up 2.25 euros, or 1.1%, at 213.75 euros ($261.25) a tonne.
The contract had found chart support after falling on Wednesday to its lowest since April 21 at 209.75 euros, dealers said.
Beneficial rain for crops in several production zones worldwide coupled with broad investor selling of shares and commodities weighed on grain markets in the previous session.
However, a run of large US export sales to China and declining estimates for a drought-affected crop in Brazil sparked a fresh rally in corn prices, helping to underpin wheat.
Algeria, the main export market for European Union wheat, was thought to have purchased around 400,000 tonnes of wheat in a tender on Wednesday at around $295 a tonne, cost and freight included, traders said.
The July shipment period requested was expected to lead to most of the option-origin purchase being sourced in France, where harvesting starts earlier than in other European countries, including Germany that also supplies Algeria. “I expect French Atlantic supplies to be the main origin to be delivered in Algeria’s purchase,” a German trader said.
Some old-crop stocks from countries like Poland might also be used to cover the Algerian purchase, traders added. While recent rain has improved crop conditions after a dry start to spring, persistent cool temperatures in Europe have raised the possibility of a late harvest that could affect availability for the start of the 2021/22 season.
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