LONDON: Euronext wheat futures climbed to a 13-1/2 year high on Monday, boosted by strong physical demand against the backdrop on tightening global supplies.
Dealers noted a massive purchase by Saudi Arabia, with top importer Egypt also buying wheat on Monday.
"Wheat demand seems to be back in with the Saudis taking nearly 1.3 million tonnes over the weekend, which was more than expected, and GASC back tendering today for the middle of December only a week after their previous buy," broker Marex said in a note.
Saudi Arabia's main wheat-buying agency, the Saudi Grains Organisation, on Monday said it had bought about 1.3 million tonnes of milling wheat at an average price of $377.54 a tonne.
Egypt's state grains buyer, the General Authority for Supply Commodities (GASC,) on Monday said it bought 180,000 tonnes of Russian wheat in an international tender for shipment over Dec. 11-20.
December milling wheat on Paris-based Euronext settled up 8 euros, or 2.8%, at 291.25 euros a tonne after peaking at 293.25 euros, the highest level for the front month since March 2008.
March ended 2% up at 284.50 euros.
In rapeseed, February futures ended 1.6% higher at 689.25 euros a tonne after setting a contract high of 691.50 euros.
Strategie Grains lowered its forecast for this year's European Union rapeseed harvest to 16.97 million tonnes from 17.03 million estimated last month.
Dealers noted that the rapeseed harvest in Australia is in its early stages and demand for the crop is expected to be strong.
"Australian rapeseed looks set for a tug of war between China, India and Europe as all three will require imports to satisfy vegetable oil demand," United Oilseeds said in a note.
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