PARIS: European wheat prices hit a two-month high on Wednesday, supported by cuts in several supply forecasts and falling US spring wheat crop ratings.
Front-month September milling wheat on the Paris-based Euronext exchange unofficially closed 2.9% higher at 246.00 euros ($269.59) a metric ton, after hitting 248.00 euros, the highest since April 21.
Russia’s Sovecon agricultural consultancy lowered its forecast for the country’s wheat crop to 86.8 million metric tonnes from 88 million.
The US Department of Agriculture on Tuesday rated 51% of the US spring wheat crop in good-to-excellent condition, down from 60% last week and below trade expectations.
“The concern about the poor weather for the US crop is supportive today with new crop wheat positions on Chicago up strongly,” one German trader said.
“With negative comments coming from the Russian government today and almost every day about the future of the Ukrainian safe shipping corridor, I think there is growing opinion in the market that the deal will not be extended unless the Russians get substantial trade concessions.”
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