Euronext wheat futures rise to one year high

Euronext wheat futures extended a rally on Wednesday to a new one year high as transport snags caused by strikes in France and uncertainty over Russia's export policy kept attention on tightening global supply.

Benchmark March milling wheat on the Paris-based Euronext exchange settled 1.00, or 0.5%, up at 195.25 euros ($217.82) a tonne.

It earlier climbed to 196.25 euros, the contract's highest level since August 2018 and a highest spot price since last February.

There were signs of price resistance in a choppy session, with Euronext falling slightly during afternoon trade before turning up again, while on the French cash market premiums in port zones were down slightly from Tuesday.

Some buyers were becoming reluctant to follow the market higher, while a brief drop in the rouble following the resignation of the country's prime minister also added some caution, traders said.

FranceAgriMer increased its forecast of French soft wheat shipments outside the European Union this season, to 12.4 million tonnes from 12.2 million last month, but the farming agency warned strikes could cost the country exports as grain supplies fail to reach ports.

News from Russia fuelled this week's rally in wheat markets, with the agriculture ministry announcing it plans to set a non-tariff quota for grain exports of 20 million tonnes for the rest of the season, although traders say this should leave ample room for the country's remaining wheat export surplus.

In Germany, standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 4 euros over the Paris March contract. Buyers were offering up to 3 euros over Paris.

A steady programme of ship loadings in Germany this week includes a ship loading 60,000 tonnes for Iran and another to load 33,000 tonnes for Kenya.

"Supplies are being called up for ship loadings while there are expectations of more sales of German wheat to other destinations, especially in Africa, as Germany continues to look competitive with Black Sea prices comparatively firm," a German trader said.