PARIS/HAMBURG: Euronext wheat rose on Thursday, boosted by short-covering in front-month futures and spillover from an export-fuelled rebound in Chicago.
September wheat on Euronext settled 1.9% higher at 197.50 euros ($229.81) a metric ton, after approaching a contract low earlier this week.
December wheat ended 1.6% up at 201.50 euros a ton, recovering from a contract low of 197.50 euros on Wednesday.
A large short position held by investors has prompted short-covering in September futures in the run-up to the expiry of options next week, according to dealers.
Chicago wheat rallied around 2% to rebound from a five-year low, encouraged by higher than expected weekly US export sales that countered supply pressure from Northern Hemisphere harvests.
“US wheat is very competitive during this first phase of the new marketing year and American exports are buoyant,” commodity data firm Expana said in a report.
The firm, which has acquired consultancy Strategie Grains, increased its estimate of the European Union’s ongoing wheat harvest while raising its outlook for EU wheat exports. However, it lowered its EU maize crop forecast for a second month due to harsh weather in southeast Europe.