PARIS: Euronext wheat regained ground on Thursday with support from crude oil as comments by US President Donald Trump tempered investor hopes of a swift end to the Iran war.
The bounce on Euronext was moderate, however, with participants adjusting positions before a holiday weekend.
Trump said on Wednesday night that the US will carry out aggressive strikes on Iran over the next two to three weeks. The remarks dampened market expectations of de-escalation in the month-old conflict and sent oil prices surging. However, in a further shift in sentiment, investors on Thursday took some comfort from efforts to revive shipping through the Strait of Hormuz.
“Grain markets are tracking macro sentiment closely, with wheat supported during energy rallies but vulnerable to abrupt selloffs,” British merchant ADM Agriculture said in a note.
May milling wheat, the most active position on Paris-based Euronext, was up 1.0 percent at 203.25 euros (USD234.65) a metric ton by 1613 GMT, recovering from a one-week low on Wednesday.
December futures, which have built up a large premium during the Iran war given concerns about the impact of mounting fertiliser costs on this year’s harvest, were up 0.6 percent at 219.25 euros.
Chicago wheat was little changed in choppy trading before the Easter holiday weekend, with the US market also assessing rain relief in parched parts of the US Plains.
Euronext and Chicago markets will be closed on Friday, while Euronext will also be shut on Monday.
The spread between old-crop and new-crop prices was a focus in Europe.
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