Euronext wheat ended little changed on Monday, consolidating after an earlier six-month high as a rally fuelled by export prospects ran into technical resistance. March milling wheat, the most active contract on the Paris-based exchange, settled unchanged from Friday's close at 189.00 euros ($211.87) a tonne.
It earlier climbed to 189.75 euros, setting a six-month top for a second session in a row, but failed to breach chart resistance at 190 euros. Chicago wheat consolidated after striking a new 16-month high earlier on Monday, while a 4-1/2 month peak for the euro against the dollar above $1.12 also curbed momentum on Euronext.
"There was some impetus on wheat and we tested some resistance levels, like 190 euros in Paris and $5.60 in Chicago," a futures dealer said. "But it's now looking like a year-end market, we're (at) December 30 and tomorrow is a short session." Wheat markets rallied in the past week as an outline trade agreement between Washington and Beijing raised the possibility of increased Chinese imports of US wheat, adding to a picture of brisk international demand.
Traders were also monitoring strikes against pension reform in France that were continuing to hamper rail transport services. Further industrial action in January could disrupt a wave of expected shipments to Morocco after the North African state decided to suspend its wheat import duty from Jan. 2 to April 30.
Port data showed a series of vessels were due this week at Rouen, France's main grain export terminal, to load wheat for Morocco. Rapeseed futures on Euronext also consolidated after setting fresh highs.
February rapeseed on Euronext ended unchanged at 412.75 euros a tonne, after rising earlier to 414.75 euros, a new life-of-contract high and a fresh high for a spot price since the end of April 2017. Rapeseed was again supported by a broad rally in oilseed markets, fuelled by optimism over the planned US-Chinese trade deal as well as a steep rise in palm oil prices.
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