Paris wheat hits 8-week high, spurred by rising Russian prices
PARIS: Euronext wheat hit an eight-week high on Wednesday as rising prices in Russia fuelled hopes that west European wheat will pick up more export sales in second half of the season.
Wheat markets were also supported by firm soybean futures in Chicago as traders reported than Chinese importers had resumed major purchases of U.S. soybeans following a recent trade truce between Washington and Beijing.
Benchmark March milling wheat on the Paris-based Euronext exchange settled up 1.75 euros, or 0.9 percent, at 206.25 euros ($234.36) a tonne.
It earlier reached 206.75 euros, its highest since Oct. 17, after breaching chart resistance around 205 euros.
Although Russian wheat again dominated the latest tender by Egypt, the world's largest wheat importer, higher prices encouraged the view that Russia is facing tightening supply and will be less competitive on export markets in the second part of the July-June marketing season.
"You have to say that western European wheat is no longer so far behind Black Sea origins," one trader said.
Signs of increasing prices and a slower pace of export loading in Russia also led European traders to shrug off Tuesday's U.S. Department of Agriculture crop report that raised projected Russian wheat exports and cut shipments from the European Union, traders said.
Farm agency FranceAgriMer nudged up its outlook for French soft wheat exports outside the EU this season.
It also said rain and mild weather in November had helped young cereal crops recover from a drought-affected sowing campaign.
In Germany, where drought slashed this year's wheat harvest, export sentiment remained more downbeat.
Standard bread wheat with 12 percent protein for December delivery in Hamburg was offered for sale unchanged at 1.0 euro over Paris March.
"The main driver in the German inland market is again domestic feed rather than exports."
Feed wheat in the South Oldenburg market for December delivery was offered for sale above milling wheat, unchanged at around 214 euros a tonne, with buyers seeking 212 euros.