PARIS: Euronext wheat futures edged higher on Friday to a new three-week high as signs of overseas demand for French wheat added to support from supply risks in other exporting countries.
December wheat on Euronext settled 0.6% up at 243.50 euros ($259.84) a metric ton, near the session high of 243.75 euros. The contract has rebounded from a three-month low earlier this week, helped by weakness in the euro, covering by investors holding short positions and supply concerns due to dry weather in countries like Australia and escalation in conflict between Russia and Ukraine in the Black Sea region.
Market chatter about demand for French wheat from Chinese buyers further underpinned prices, with traders citing firmer physical premiums at French ports.
China has been a major outlet for French wheat in recent seasons but France has not shipped any wheat there this season, though it has exported a large volume of barley. Increased competitiveness of French wheat was also shown by the loading of a first shipment to Algeria this season and a new series of loadings for Morocco, as per port data compiled by LSEG.
Euronext was supported on Friday by a rise in Chicago wheat, though a bounce in the euro kept Paris prices in check. Large Russian exports remained a cap on international prices, tempering worries about escalation in Moscow’s war in Ukraine.
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