PARIS: European wheat futures rose to a one-month high on Wednesday, supported by dry weather in the US wheat belt and soaring oil prices linked to the Strait of Hormuz standoff.
Benchmark September milling wheat on Paris-based Euronext was up 1.4percent at 217.25 euros (USD254) a metric ton by 1515 GMT.
Chicago wheat was up 1percent.
“Markets are supported by the dryness in the US and high oil prices, both indirect but powerful factors,” one German trader said. “Reports President Trump is planning a long-term blockade of the Hormuz Strait are the dominant factor in grain markets today.” European cash markets did not gain significant support from the dryness in the US, probably because Black Sea wheat was expected to dominate global exports in the new season, he said.
There were also hopes of more sales of EU wheat to US East Coast buyers in the coming weeks if US prices remain high. Buyers in the United States purchased milling wheat in Poland to be supplied from the summer 2026 harvest because of high US wheat prices, European traders said last week.
Export demand remained thin as buyers held back in the hope of an Iran peace deal.
Among thin demand for 11.5percent protein wheat was a buyer in Libya seeking about 10,000 tons of EU wheat for May shipment and a Turkish buyer seeking about 10,000 tons at around USD245 a ton cost and freight (c&f) for May shipment.
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