PARIS: Euronext wheat rose sharply on Tuesday, rebounding from a two-week low as weather concerns fuelled a broad rally in grain markets.

March milling wheat on Paris-based Euronext settled up 5.25 euros, or 1.9%, at 279.25 euros ($315.22) a tonne. The contract had found chart support after falling on Monday to 272.25 euros, its lowest since Dec. 16.

Chicago wheat also rose after a two-week a day earlier, with a steep decline in crop ratings in Kansas and Oklahoma, the top two US winter wheat producing states, putting attention back on dry conditions in the US Plains. Wheat markets also drew support from strong gains for soybeans and corn as traders focused on potential crop losses in part of South America due to dry, hot weather.

Volatility was also linked to rallies in wider financial markets, as fears over the Omicron coronavirus variant abated, and new year adjustments by investors, traders added. Euronext wheat had reached a record high in November on the back of tightening global supplies. The market has since seen bouts of selling, encouraged by bumper harvests in Argentina and Australia, although analysts see supply tensions persisting until the next northern hemisphere harvests. European Union data showed EU soft wheat exports so far in 2021/22 had reached 14 million tonnes, up from 13.6 million a year earlier, although figures for France remained incomplete.

In rapeseed, February futures on Euronext ended up 2.2% at 788.25 euros, approaching last week’s high of 791.50 euros that was a record peak for Euronext.

Weather risks for South American soybeans and supply disruption to Malaysian palm oil have added to ongoing support from tight old-crop rapeseed supply in Europe.