PARIS: Euronext wheat rebounded on Thursday to move back close to contract highs as attention turned back to strong international demand that is eroding availability in exporting countries. December milling wheat, the most active contract on Paris-based Euronext, settled up 5.75 euros, or 2.2%, at 270.50 euros ($313.43) a tonne.
It recouped most of its losses from the previous session, when it had pulled back from a life-of-contract peak of 272.00 euros struck on Tuesday. Higher than expected forecasts of US corn and soybean supplies in a US Department of Agriculture report had encouraged profit-taking in wheat on Wednesday.
"However, continued import interest and dwindling export availabilities should provide support to the market, especially for the long-term," British merchant ADM Agriculture Ltd said in a note. After Egypt created uncertainty by cancelling a tender on Tuesday, tenders issued on Thursday by Turkey and Jordan underscored sustained import demand.
In France, port data showed a lengthening lineup of export loadings for October, led by shipments for China. Farm office FranceAgriMer had on Wednesday maintained its estimate of French soft wheat exports in 2021/22, despite reducing expected supply.
Rapeseed futures on Euronext also rallied, supported by firm mineral oil prices and record prices this week for palm oil. Front-month November settled up 2% at 660.00 euros a tonne, to move back towards last Friday's contract high of 685.00 euros.
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