Benchmark European wheat futures rose to their highest level in almost a week on Wednesday, supported by further weakness in the euro, before giving up some of its gains after a US government crop report indicated plentiful grain supplies. December milling wheat on Paris-based Euronext was settled 1.50 euros or 0.9 percent higher at 159.50 euros a tonne.
It earlier touched an intraday high of 160.25 euros, extending a rebound from last Friday's three-month low of 157.00 euros. CME Group's December EU wheat contract rose 0.50 euro to 165.25 euros a tonne. "There was a lot of buying interest ahead of the USDA report," one futures dealer said. "The euro has fallen a lot in the past two days."
The euro fell to a new 11-week low against the dollar on Wednesday, making commodities priced in the European currency cheaper internationally. However, European futures trimmed their gains after the US Department of Agriculture's (USDA) report reaffirmed the prospect of large US and global grain supplies this season.
EU futures again found support in firm French cash market prices, with exporters continuing to face limited availability of milling wheat after a poor French harvest, brokers said. In other news, Euronext said on Wednesday that its planned fertiliser futures will start trading on November 14, with March 2017 as the first delivery position. French farm co-operative group InVivo said its brokerage unit Sigma Terme has agreed to merge with CACEIS, part of the Credit Agricole bank, on November 1.
Comments
Comments are closed.