European wheat futures in Paris rose to their highest in about 1-1/2 years on Tuesday, supported by rising US markets and continued transport problems in France due to strikes, traders said.
The benchmark March contract on the Paris-based Euronext milling wheat futures unofficially closed up 2.75 euros or 1.4% at 198.50 euros ($220.16), its highest since August 2018.
The organisation representing French grain producers, exporters and grain transformers warned the strikes in France over pension reform, which have hampered rail transport and blocked ports, could have a dramatic impact on grain exports.
The rise on US markets was also supporting prices along with technical factors, traders said.
"The fundamentals have not changed - mainly strong demand, transport problems in France - and then you have the rise in Chicago and technical resistance that has been broken," a trader said.
"Some thought we would not touch 200 euros, but we are not far from it now," another trader said.
In Germany, cash premiums in Hamburg were again supported by brisk export shipments from German ports.
Standard bread wheat with 12% protein for February delivery in Hamburg was offered for sale unchanged at 4.5 euros over the Paris March contract. Buyers were offering up to 3.5 euros over Paris.
In Poland, strong exports also supported prices in the past week. "Domestic demand is also picking up because the mills and feed compounders do not have enough coverage with grain for the next couple of months," one Polish trader said.
Exporter purchase prices for milling wheat with 12.5% protein for January/February delivery to port silos rose 35 zloty on the week to 825 zloty (194.7 euros) a tonne.
"Polish wheat is still competitive on the world market and a series of large bulk carriers are loading wheat or about to load," the trader added.
One ship has just sailed from Stettin with 60,000 tonnes of wheat for South Africa and another is set to call at Szczecin to load 60,000 tonnes for an unnamed destination.
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