PARIS: New-crop wheat on Euronext rose sharply for a second day on Tuesday as fears of a protracted conflict in Ukraine and mixed growing conditions in the United States focused attention on risks for next season’s supply.
September futures on Euronext settled 6.50 euros, or 1.9%, higher at 342.25 euros ($373.60) a tonne, approaching a contract high of 350 euros struck last month. The contract had already climbed 2% on Monday. May futures, the last remaining position for trading the 2021 crop, edged up 0.2% to 364.50 euros. “There’s a fundamental driver in the risk that the war will last,” a futures dealer said.
“The rally in US futures is also being fueled by weather conditions.” The European Commission forecast that European Union soft wheat exports would jump to 40 million tonnes in 2022/23, from 33 million this season, as a lack of Ukrainian supplies was expected to create extra demand.
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