PARIS: Euronext wheat extended a rally on Friday to reach its highest since December as traders grappled with weather charts suggesting little rain relief for a parched crop belt in top exporter Russia.
September wheat, the most active position on Paris-based Euronext, was 1.3% up at 234.50 euros ($250.28) a metric ton by 1527 GMT, putting it up 9% this week.
The contract earlier hit its highest since Dec. 13 at 234.75 euros.
After consolidating in morning trade, Euronext resumed its rally in step with Chicago wheat as weather updates appeared to show southern Russia would stay mostly dry and warm in the week ahead.
There was also concern that showers in the central United States would miss part of top wheat growing state Kansas.
“Dry and hot weather is mostly forecast for the south Russian wheat regions in the next two weeks which is not good news for crops which are in need of rain,” one German trader said. There were also crop worries in the European Union.
The European Commission on Thursday cut its forecast for the EU’s main wheat crop in 2024/25 to a new four-year low, underscoring a drop in area after rain-disrupted planting.
In France, the EU’s top wheat producer, the condition of soft wheat crops edged down last week to remain at a four-year low, data from farm office FranceAgriMer showed on Friday.
Wheat markets were nonetheless being capped by ample short-term supplies being exported through the Black Sea.
Russian 12.5% protein wheat for May Black Sea shipment was quoted at about $213 a ton FOB on Friday but with reports of trading around $216 a ton, traders said.
A large Panamax-size shipment of Ukrainian 11.5% protein milling wheat for late May/early June shipment was offered for sale at $205 a ton FOB, the German trader said. Despite the war risk, Indonesian buyers were seeking offers for a large 50,000 ton shipment of Ukrainian 11.5% milling wheat for May/June shipment, he added.
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