PARIS: Euronext wheat futures rose on Wednesday to approach contract highs, supported by adverse crop weather in exporting countries like France and fresh import demand including a reported purchase by Algeria.
September milling wheat on Paris-based Euronext settled up 6.75 euros, or 1.7% at 403.25 euros ($424.62) a tonne.
It earlier reached 404 euros, close to Monday’s life-of-contract high at 405 euros.
Chicago wheat futures also rallied in US trading.
Farm office FranceAgriMer said rain was urgently needed to avoid damage to cereal crops, echoing growing concerns about developing drought in the European Union’s biggest grain producer.
Dryness in France and other parts of western Europe along with drought in the southern US Plains and a heatwave in India have made traders nervous that the market will be unable to fill a supply gap created by Russia’s invasion of Ukraine.
Weather forecasts showed showers next week in France, although traders said it was unclear if they would bring enough moisture to compensate for a hot, dry spell this week.
Algeria is thought to have made an initial purchase in a tender on Wednesday at around $466 a tonne, cost and freight included, although the volume was unclear and the tender expected to continue, traders said.
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