PARIS, Oct 22 (Reuters) – Euronext wheat rose on Friday to set fresh contract highs, supported by a rally in Chicago and latest import tender news.
December milling wheat BL2Z1 was up 1.5% by 1506 GMT at 280.75 euros ($326.99) a tonne, a life-of-contract peak.
March BL2H2, now the most active position on Paris-based Euronext, was at a new contract high of 275.25 euros, also the highest level for a second-month price BL2c2 in almost nine years.
Euronext has climbed sharply in the past month on the back of brisk European exports, including rumoured sales of French wheat to China last week. GRA/EUEUGRA/EXIM
Traders said a Tunisian import tender on Friday, in which the country’s state grain buyer paid higher prices than previously and booked only half of the 100,000 tonnes it had sought, underscored price tensions in wheat. GRA/TEND
U.S. wheat futures also rallied, boosted by a weaker dollar and tight supplies of high-protein crop. GRA/
A rising export duty in top exporter Russia was also supporting expectations of firm wheat prices.
In France, farmers had sown 40% of the expected soft wheat area for next year’s harvest by Oct. 18, farm office FranceAgriMer estimated on Friday.
In Poland, prices were pushed up by this week’s strength in Paris and a lack of farmer selling.
Exporter prices for Polish 12.5% protein milling wheat rose 20 zloty this week to 1,240 zloty (269.4 euros) a tonne for October delivery to ports.
“Prices are sometimes nominal because of thin trading volumes,” one Polish trader said.
“Farmers and regional traders are unwilling to sell in a rising market. Some farmers are also worried about high fertilizer prices and could be holding back some grains for extra financial security.”
Rising prices were also curbing new export sales, in addition to a slowdown in loading activity, traders said.
In Gdansk/Gdynia, two new vessels appeared on port lineups, one taking on 33,000 tonnes for Algeria and another 51,000 tonnes believed to be for the Middle East.
In Szczecin/Swinoujscie, one new vessel is loading 33,000 tonnes of wheat for North Africa.
($1 = 0.8586 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg, Editing by Louise Heavens)
(([email protected]; +33 1 49 49 52 18; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com