Euronext wheat futures rose on Monday to a two-week high, tracking a surge in US futures that was triggered by a trade deal between Washington and Beijing. March milling wheat, the most active contract on the Paris-based Euronext exchange, settled up 3.25 euros, or 1.8%, at 186.50 euros ($205.56) a tonne.
It earlier rose to 187.00 euros, a level last reached on Dec. 2 when the price had marked a 4-1/2 month peak. US wheat futures climbed over 3%, breaking technical resistance levels, as higher than anticipated weekly US export inspections added to demand optimism created by Friday's first-stage agreement between Washington and Beijing to de-escalate their trade dispute.
The deal included a Chinese commitment to increase purchases of US farm goods.
A weekend announcement by Argentina's government of an increase to export taxes for agricultural goods including soy, wheat and corn also lent support to grain prices.
Price gains on Euronext were more moderate as the market was less focused on the US-Chinese agreement while also facing pressure from the euro, which was holding near a four-month high against the dollar touched on Friday.
Weekly European Union data showed EU soft wheat exports so far in 2019/20 had reached 12.8 million tonnes, up 66% from the same period last year. French physical wheat premiums were steady.
Traders were monitoring the impact of strikes against pension reform in France, which could delay ship loadings in the run-up to the year-end holiday period. "Some exporters who wanted to get a lot of wheat through before the holiday season are getting worried," one trader said.
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