Euronext wheat futures rose to their highest in almost two weeks on Thursday as a rally in Chicago and technical momentum on price charts offset pressure from an advancing wheat harvest. December milling wheat on the Paris-based Euronext market was up 2.25 euros or 1.2 percent at 187.00 euros a tonne by 1548 GMT. It earlier rose to 188.00 euros, its highest since July 24.
The gains, which lifted the market further away from Monday's six-week low of 181.75 euros, took some traders by surprise given bearish fundamental signals from an expected record wheat crop in France and strong export competition from Black Sea origins. Chicago wheat rose by 2 percent, supported by better-than-expected weekly export sales. "The market made a break higher on the back of some short-covering," one Euronext dealer said. "Chicago also helped pull us higher."
Euronext maize (corn) added more than 2 percent as it continued to reduce its usual discount to wheat amid declining expectations for this year's European Union maize crop. After French maize endured record temperatures and low rainfall during July, concern was shifting towards eastern EU producers such as Romania and Hungary, where a prolonged heatwave has been forecast. Slow selling by farmers also underpinned wheat and maize prices. In exports, the EU reported 372,000 tonnes of weekly soft wheat export licences. This was below the 384,000 tonnes of barley export licences in a further sign of strong demand in China for French barley.
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