Paris wheat at 9-month highs on Russian harvest concern

HAMBURG/PARIS: European wheat futures extended a rally on Monday to a nine-month high as continuing cold weather in Russia and a sharply reduced forecast for Russia’s crop heightened concern about weather damage in the top wheat exporter.

September wheat, the most active contract on the Paris-based Euronext, closed up 3.5% at 258.25 euros ($278.78) a metric ton. The contract earlier reached its highest since July 26 at 259.75 euros.

After futures consolidated in morning trade, encouraged by forecasts of rain relief in parched southern Russia, attention shifted back to potential losses from late frosts during May. Russia’s IKAR consultancy on Monday cut its forecasts of Russia’s wheat crop to 86 million metric tons from 91 million tons.