Euronext wheat futures rose to a two-month high on Wednesday as export demand and technical support kept prices firm ahead of closely watched US crop data.
Benchmark December milling wheat on Paris-based Euronext settled 0.75 euros, or 0.4%, higher at 178.75 euros ($196.05) a tonne. In closing deals the contract touched a high of 179.00 euros, a level last reached on Aug. 2, after breaking above a chart resistance zone at 177-178 euros.
Farm office FranceAgriMer sharply increased its forecast of French soft wheat exports outside the European Union this season, to 11.7 million tonnes from 11 million estimated last month, citing positive sentiment among traders in view of a big harvest and competitive prices in France.
The upward revision followed a run of export loadings for Morocco, although French wheat missed out in an Egyptian tender on Tuesday when the world's top importer bought Russian and Ukrainian wheat.
"There is some short-term export demand although I'm puzzled at the buying on Euronext," one futures dealer said. "We were expecting a much quieter session before the USDA report."
Grain markets are bracing for the US Department of Agriculture's October crop forecasts on Thursday for a clearer picture of yields for late-planted US corn and soyabeans.
Any cuts to harvest yields by the USDA could stir the market after the agency already tightened the US supply outlook by pegging quarterly stocks of corn and soyabeans below expectations in a report at the end of September.
In Germany, cash premiums in Hamburg were flat in subdued trading before Thursday's USDA data and as German exports remained sluggish. Standard bread wheat with 12% protein for October delivery in Hamburg was offered for sale unchanged at 2.0 euros under Paris December. Buyers were seeking at least 3.0 euros under Paris.
"The Black Sea dominance of the export market continues, as was illustrated by the success of Russian and Ukrainian wheat in Egypt's purchase tender on Tuesday," a German trader said.
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