PARIS: Euronext wheat rebounded on Friday from a one-month low as headlines from the Ukraine-Russia war encouraged participants to adjust positions before the weekend, dealers said.
December wheat, the most active position on Paris-based Euronext, was up 1.7% at 242.25 euros ($263.33) per metric ton by 1537 GMT, recovering from Thursday’s low of 237.00 euros.
Chicago wheat climbed around 3% in US trading, also supported by an easing dollar. A Ukrainian drone damaged a building in central Moscow on Friday, Russian officials said, while on Thursday two Russian war ships repelled a Ukrainian attack with an unmanned boat near Crimea, according to the Russian defence ministry. Dealers said there was also chatter about a fire near the Russian Black Sea port of Novorossiysk, though it was unclear if the incident was related to the war.
“With this (war) uncertainty people are covering short positions before the weekend,” one futures dealer said. Regular air strikes by Russia on Ukrainian grain since mid-July, when it pulled out of the UN-backed deal for Ukraine to export grain, and strikes by Kyiv on Russian targets, including along the Black Sea, have kept participants wary about disruption to exports. However, large harvest supplies and brisk shipments from Russia have kept a lid on prices. Traders were also monitoring efforts to maintain Ukrainian exports via European Union countries. French farmers almost completed soft wheat harvesting in the week to Aug. 14, data from farm office FranceAgriMer showed on Friday.
The market, however, is awaiting a clearer picture of wheat quality in northern France and elsewhere in northern Europe after heavy rain in the past month.
In rapeseed, November futures on Euronext were up 1.7% at 476.25 euros per metric ton after earlier reaching a two-week high, supported by weather concerns for US soybeans and broader strength in oilseed markets.
French farmers had gathered 96% of this year’s soft wheat crop by Aug. 14 compared with 89% a week earlier, as they neared the end of this year’s harvest following recent rain delays, data from farm office FranceAgriMer showed on Friday.
Heavy rain since the end of July has slowed field work in northern France and raised some concern about the milling quality of wheat, although the onset of a warm, dry spell is expected to allow farmers to finish harvesting this week.
The soft wheat harvest has lagging the rapid pace of last year, when field work was already complete by the same week, and was slightly behind an average 97% for the same week over the past five years, FranceAgriMer said in a cereal report.
The spring barley harvest also neared completion last week, with 98% of the crop cut by Aug. 14 against 96% a week earlier. Farmers completed winter barley and durum wheat harvesting in July.
For grain maize, harvested later in the year, 84% of crops were rated in good or excellent condition. That was down slightly from 85% the previous week but well above a 50% score a year ago when maize was affected by severe drought.
Rain and mild temperatures in the past month have helped maize plants, though hot weather that has spread across France this week could strain some crops.
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