Paris wheat rebounds on short-covering

HAMBURG/PARIS: Euronext wheat prices rose on Monday after finding support around contract lows and as investors covered large short positions.

September milling wheat on the Paris-based Euronext rose 1.5% to 197.75 euros ($228.60) a metric ton at 1501 GMT. It earlier fell to 193.75 euros, near a contract low of 192.75 hit in early July. The December contract hit a new contract low of 200.25 euros, but held above the 200 euro level.

Dealers said a large level of open positions meant the September contract was prone to short-covering, particularly in the run-up to the expiry of options on August 15. One dealer said there was “nothing really bullish in the market,” but anticipated funds would roll a massive short position into the September contract over the coming week.