Euronext wheat rose on Monday to its highest in more than seven months as supply snags in France caused by transport strikes added to support from brisk overseas demand. Benchmark March milling wheat on the Paris-based Euronext settled up 1.50 euros, or 0.8%, at 193.00 euros ($214.98) a tonne.
It earlier climbed to 193.25 euros, its highest since May 29 last year and above a previous seven-month peak of 192.25 euros touched on Friday. Logistical difficulties in France linked to rail and port strikes over pension reform were continuing to push up cash premiums in export zones, with price strength spilling over into futures.
Buyers were bidding 5 euros a tonne above Euronext at Rouen and La Pallice, France's two biggest grain ports, on Monday, 1.5-2 euros more than a week ago, according to brokers. "Logistical problems with the strikes are continuing," one physical broker said.
"The port silos were well stocked but with all the recent vessel loadings, they are emptying out. This can't go on too long," he added. Soufflet, one of France's biggest grain exporters, warned on Friday of a shortage of supplies at ports later this month if strikes continued, while firms also warned of rising costs to replace idled trains with lorries.
A small fire on Sunday at one of the grain silos at Rouen port had also slowed loading, while a call for a three-day stoppage by dockers from Tuesday was expected to cause further disruption, traders said. The transport bottlenecks in France have coincided with strong export demand for western European wheat.
In world crop forecasts on Friday, the US Department of Agriculture (USDA) raised its outlook for European Union exports of wheat, including durum, this season to 31 million tonnes from 29 million previously. Weekly EU export data was delayed for a second successive week due to a continuing technical problem, the European Commission said.
In Germany, standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale at 5.0 euros over the Paris March contract against 4.0 euros over on Friday. Buyers were offering up to 4 euros over Paris.
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