PARIS: Euronext wheat edged higher on Tuesday, in step with Chicago futures, as uncertainty about supply from Russia and further gains in soybeans and corn underpinned the market.
March milling wheat on the Paris-based Euronext exchange was up 0.50 euros, or 0.2%, at 208.50 euros ($253.83) a tonne at 1713 GMT in thin volumes in the run-up to the Christmas holiday.
The contract earlier reached a one-week high of 209.75 euros but held below chart resistance at 210 euros.
Chicago wheat also touched a one-week top after recovering from an overnight fall.
Wheat continued to draw support from US soybeans and corn, which struck 2-1/2 year and 1-1/2 year highs, respectively, as brisk US exports and worries over South American supply sustained buying interest.
Wheat prices were also sustained by expectations that Russian wheat exports will be slowed by government measures to cool domestic food prices, and by background concern about the poor condition of Russian crops going into winter.
“Wheat can’t really fall when the Russian measures are set to shift demand towards other export origins,” a futures dealer said.
“Plus you have the tensions on the corn and soybean markets.”
A Russian wheat export tax, to apply from Feb. 15 to June 30, along with reports of delays in obtaining export documents from Russian customs, have led analysts to trim their forecasts for Russian shipments this season.
However, traders and analysts see tight European Union wheat stocks as limiting scope for the bloc to take extra export demand from Russia.
Ample global supplies, including a bumper Australian harvest coming onto the market, were also seen offsetting supply tensions in Europe.
Activity in Europe was curbed by a traditional year-end break on physical grain markets, with firms only handling essential business.
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