Euronext milling wheat futures surged on Thursday with all new crop contracts setting new contract highs on fears of crop-damaging drought. The most liquid French wheat futures contract November was up 1.00 euro at 151.00 euros a tonne after reaching a new contract high of 153.00 euros a tonne.
Other contracts were up between 1.00 and 5.00 euros a tonne with front-month May, the last old-crop contract, following the surge, up 5.00 euros at 168.00 euros a tonne.
"In view of world stocks, at their lowest level in 25 years, and low European ending stocks, any weather problem for the new season will have a serious impact on the (supply/demand) balance," French grains analyst Argyle said on Thursday.
France has seen very little rain over the last two weeks while temperatures have been far higher than the seasonal average. Wheat futures on the Chicago Board of Trade, which gained nearly 5 percent on Wednesday on weather concerns in Europe and Australia, rose between 6 and 12 cents per bushel in after-hours electronic trade with new-crop July up 9-1/4 cents at $5.29-3/4 per bushel.
Worries about the dry conditions are particularly marked in central and eastern Europe, including the key Black Sea growing region, and come on top of previous concerns about freeze damage to US wheat and drought-hit Australia. Weather forecaster Metro France announced dry weather on most large grain growing regions for Thursday.
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