PARIS: European wheat edged higher on Friday as traders adjusted their positions ahead of the US Department of Agriculture’s monthly supply and demand report later in the day.
Benchmark December milling wheat on Paris-based Euronext was up 0.6 percent by 1447 GMT to €245.75 (USD275.22) a metric ton.
The weakness of the euro against the dollar, boosting European grains’ competitiveness on international markets, was also supportive.
In Chicago wheat futures ticked lower in featureless trade. Strength in the dollar hung over the market, but disruptions to Black Sea exports lent underlying support.
“Geopolitical tensions in the Black Sea remain a dominant factor for wheat markets, with fresh
drone strikes on merchant vessels near Bulgaria adding to concerns over export disruptions from the region,” Frontier Agriculture said a note.
“Meanwhile, expectations of Friday’s United States Department of Agriculture report are keeping traders cautious, with analysts forecasting a slight increase in US and global wheat ending stocks.”
Analysts surveyed by Reuters on average expected the government to raise its forecast of US 2026/27 wheat ending stocks to 721 million bushels, from 717 million last month and keep its world wheat ending stock forecast nearly unchanged at 277 million bushels.
For corn, analysts on average expected the agency to lower its estimate of the national 2026 corn yield to 177.7 bushels per acre, from 178.5 bpa last month.
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