PARIS: Euronext wheat extended a rally to new contract highs on Monday as a weaker euro and technical adjustments added to recent support from brisk exports and tightening availability.
December milling wheat settled up 2.00 euros, or 0.7%, at 282.00 euros ($328.19) a tonne after touching a latest life-of-contract peak at 283.00 euros,
March futures, now the most active position on Paris-based Euronext, struck a new contract high of 278.00 euros, the highest level for a second-month price in almost nine years.
Euronext has climbed sharply in the past month on the back of brisk European exports, including rumoured sales of French wheat to China this month.
A steady run of tenders by importers has underscored demand and supported expectations of falling stocks in exporting countries.
Traders were watching to see when Algeria, the biggest export outlet for European Union wheat, would enter the market again after last tendering nearly a month ago. Morocco, meanwhile, confirmed it would suspend import duties on soft wheat while also suspending its duty on durum wheat.
US wheat futures also rose on Monday, although a stronger dollar and weakness in corn curbed gains.
Firm prices in Russia, partly due to a rising export duty, continued to underpin Euronext. EU farmers have made good progress in sowing winter grains including wheat thanks to generally favourable weather, the bloc's crop monitoring service said.
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