PARIS: Euronext wheat rose on Thursday to its highest in nearly two weeks as the latest import tenders added to brisk overseas demand, while adverse weather continued to create concern over global grain supply. Front-month December milling wheat on Paris-based Euronext was up 2.00 euros, or 1.0%, at 208.75 euros ($246.41) a tonne at 1659 GMT.
It earlier rose to 210.75 euros, its highest since October 23. Chicago wheat rallied with support from a weaker dollar as investors factored in increasing chances that Joe Biden would defeat President Donald Trump in a tight US presidential vote count while Trump's Republican party would retain control of the US Senate.
A wheat tender being held by Egypt on Thursday and a tender announced by Saudi Arabia were set to add to a wave of purchases by importers. However, competitive offers of Russian wheat in the Egyptian tender dampened hopes of French wheat sales, suggesting Russian prices had ebbed after a surge in recent weeks.
Some traders were nonetheless expecting supply and demand tensions in grain markets given strong demand led by China and question markets over crops worldwide, including Ukraine's drought-hit maize harvest and Russia's recently sown winter wheat.
A broad rally in oilseed markets continued to fuel gains in rapeseed on Euronext. Front-month February rapeseed added as much as 1.6% to a new life-of-contract high of 402.50 euros. This was also the first time since February that a spot price had reached the 400 euro mark. Doubts about soybean harvest prospects in South America and palm oil production in Malaysia, plus strong Chinese demand have buoyed oilseed prices.
Comments
Comments are closed.