PARIS: Euronext wheat futures rose on Friday, tracking a rally in Chicago as delays to some Russian exports and concern about an escalation in fighting between Russia and Ukraine encouraged participants to cover positions.
Adverse weather, including dryness in parts of North America and the Black Sea region, as well as damp conditions in France, also supported prices as the market enters the sensitive spring growing season in the northern hemisphere.
May milling wheat, the most active position on Paris-based Euronext, was 1.4% up at 202.75 euros ($219.80) a metric ton by 1615 GMT.
Chicago wheat was up 2% in US trading. Fresh reports of administrative delays to Russian export cargoes, including vessels bound for major importer Egypt, unsettled the market like two weeks ago.
“There is definitely more market concern that something is happening to hinder Russian grain shipments,” a German trader said. However, futures pared earlier gains after news that two grain cargoes, including one for Egypt, had received phyto-sanitary certificates from Russian authorities.
Some traders played down the idea of further cargo delays and noted that Russian prices were stable, albeit maintaining recent gains.
“Currently I cannot see signs of more ships being delayed in Russian ports because of the phyto-sanitary dispute between export houses and the authorities,” said one Russian trader involved in Russian business. “It seems to be more fear of delays than actual delays.”
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