PARIS: Euronext wheat rose sharply in late trade on Thursday after the US government pegged US corn and wheat plantings below market expectations, sending Chicago futures rallying.

May milling wheat on Paris-based Euronext settled up 1.9% at 369.50 euros ($409.33) a tonne, after climbing as high as 374 euros in late trade.

The US Department of Agriculture (USDA) estimated US corn and wheat plantings at below average analyst expectations, while also pegging quarterly US wheat stocks at their lowest since 2008. The USDA’s planting and stocks reports are a key indicator in global grain markets and have taken on extra significance as traders grapple with supply tensions created by the conflict between Russia and Ukraine, two of the world’s biggest grain exporters.

Grains, like other commodity markets, have been volatile during the month-old conflict in Ukraine, which has cut exports through the Black Sea.

Signs of progress in negotiations between Russia and Ukraine pushed wheat prices sharply lower earlier this week, before ceasefire hopes ebbed as fighting continued.

European traders were also assessing latest import tenders.

A purchase of 125,000 tonnes of wheat by Tunisia and an estimated 600,000 tonne purchase by Algeria in tenders held on Wednesday were expected to bring more sales for European Union wheat, including from Romania and France.

However, prices seen as relatively low in the tenders tempered market sentiment, traders said.