PARIS: Euronext wheat futures were narrowly mixed on Thursday as a US holiday closure encouraged the market to consolidate following record highs this week fuelled by global supply risks.
March wheat, the most active contract on Paris-based Euronext, was up 0.25 euro, or 0.1%, at 308.50 euros ($345.92) a tonne by 1614 GMT in light volumes.
It was holding near Wednesday’s peak of 311.50 euros, which was a record for a second-month position.
December was down 0.3% at 305.25 euros, with the front-month position against seeing some selling linked to its upcoming expiry.
In the previous session, December futures set an all-time high for a Euronext contract at 313.50 euros.
Chicago wheat, which hit a nine-year high this week, did not trade as US markets observed the Thanksgiving holiday, depriving Euronext of usual impetus.
“The market has lost its bearings after breaking through 300 euros,” Nathan Cordier, analyst at consultancy Agritel, said.
“There’s a lot of tension in the market and we’ll have to see how demand reacts to these price levels.”
The rally in wheat markets has been fanned by doubts over crop quality in Australia and traders were waiting for harvest reports to assess the impact of recent heavy rain.
In Poland, prices rose in the last week due to strong international markets and limited sales offers.
Export demand in Poland was slack, despite hopes rain damage in Australia could push more demand towards the European Union, traders said.
“I can see no large ships listed in port schedules to loading wheat in the near future in Poland with high prices and expensive ocean freight a burden to new sales, despite overall competitiveness of Polish wheat on the world market,” one Polish trader said.
“Prices inland are sometimes higher than in export ports which illustrates the low export demand.”
Polish 12.5% protein wheat for prompt delivery to ports rose about 30 zloty on the week to 1,380 zloty (295.2 euros) a tonne.
Polish millers are offering up to 1,400 zloty a tonne for 12.5% protein wheat, up 80 zloty on the week, with traders saying inventories are being built up before Christmas. ($1 = 0.8918 euros).