Euronext wheat futures ended flat to higher on Friday, with front-month prices buoyed by larger-than-expected US export sales, while further out positions were more subdued. May milling wheat, the most active contract on Paris-based Euronext, settled unchanged on the day at 194.50 euros ($220.62) a tonne. Front-month March futures ended 1.00 euro higher at 196.00 euros after reaching a one-week top at 197.50 euros.
A bigger than anticipated volume of US wheat export sales - as the US Department of Agriculture released figures for six weeks up to Feb. 14 to clear a backlog caused by a government shutdown - sparked a rally in spot prices as it suggested strong short-term demand. "There were decent US export sales for the past month so people thought there could be a short-term squeeze in export supply," a futures dealer said.
"There was an idea that traders may need to take delivery of March futures to get physical supply."
Traders have long anticipated an upturn in demand for US and EU wheat as supply dwindles in top exporter Russia.
But concern that US and EU shipments were lagging too far behind contributed to a price slide that pushed Chicago and Paris futures to seven-month lows earlier this week.
Chicago wheat also rallied after Friday's USDA export data. But it later pared gains as the US grain market focused on developments in ongoing trade talks between Washington and Beijing that could bring fresh demand for US crops.
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