PARIS: Euronext wheat rose on Wednesday, supported by a rally in Chicago futures and concerns that severe disruption to Black Sea exports will start to tighten global availability.
December wheat, the most-active contract on Euronext, was up 0.9 percent at €237.75 a metric ton at 1555 GMT, after earlier reaching its highest in more than two weeks at €238.00.
September futures were up 1.7 percent at €227.00 a ton, as they recovered from a two-session fall linked to the expiry of options.
Chicago wheat climbed more than 2 percent, aided by a drop in the dollar as investor worries over inflation and public debt fuelled volatility in financial markets.
A corresponding jump in the euro, which hit its highest against the dollar since May, curbed gains on Euronext.
Attacks on shipping have brought Russia and Ukraine’s grain exports from the Azov and Black Sea basin to a virtual halt.
The disruption has fuelled speculation that importers will turn to other origins like French and US wheat.
But limited indications so far of such switching, together with falling prices for Russian and Ukrainian wheat, gave the impression some buyers were waiting for de-escalation in the Black Sea, traders said.
Ukraine has sustained reduced exports via its western neighbours, while traders said Russian wheat continued to be offered relatively cheaply via Baltic Sea ports.
This year’s soft wheat harvest in France is showing above-average results so far on some key measures of milling quality, according to data published by farm office FranceAgriMer.
Financial investors cut their net long position in Euronext wheat, data published by Euronext showed.
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