PARIS: Euronext wheat futures were little changed on Thursday, as a drop in the euro helped the market to steady after retreating from a record high earlier this week.
Grain markets were also looking ahead to the US Department of Agriculture’s (USDA) November world crop report next Tuesday for fresh direction after the recent rally led by wheat.
December milling wheat on Euronext was unchanged on the day at 289.50 euros ($334.23) a tonne by 1714 GMT. On Tuesday it had reached 297.00 euros, a record high for a front-month contract.
The more active March futures were down 0.25 euro, or 0.1%, at 285.25 euros a tonne, holding near Tuesday’s high of 289.50 euros - a level not previously seen on a second-month position since March 2008.
A sharp fall in the euro against a broadly stronger dollar countered pressure from weaker US futures in Chicago.
Despite some profit-taking from this week’s highs and the prospect of export competition from big harvests in Argentina and Australia, Euronext was still well supported by importer demand, firm prices in Russia and dry growing conditions in the Black Sea region.
“After all, the market is tight and demand has remained robust of late despite the high prices,” Commerzbank said in a note.
Wheat contributed to a new 10-year high for global prices of food commodities in October and was expected to support record cereal trade this year, the UN food agency said on Thursday.
Traders were watching to see if Pakistan would take up offers received in a tender seeking 90,000 tonnes, after declining bids in a previous tender last week.
In France, a late-running maize harvest was the focus in the physical market, with wet weather and difficulties for grain handlers in securing gas for drying incoming crop expected to add to delays, traders said.
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