PARIS, Nov 26 (Reuters) – Euronext wheat futures fell sharply on Friday to pull away from this week’s record highs, pressured by a broad slide in financial markets as investors fretted about a coronavirus variant. MKTS/GLOB
March wheat BL2H2, the most active contract on Paris-based Euronext, was down 8.00 euros, or 2.6%, at 308.75 euros ($345.92) a tonne by 1251 GMT.
The contract found support around 300 euros, the psychological threshold it breached to the upside this week on its way to Wednesday’s peak of 311.50 euros, a record for a second-month position BL2c2.
December BL2Z1 was down 2.4% at 298.25 euros, with the front-month position again seeing selling linked to its upcoming expiry.
On Wednesday, December futures set an all-time high for a Euronext contract at 313.50 euros.
“With the southern African variant we’ve slipped back to 300 euros,” a European trader said. “But there is still concern about Australia’s crop.”
This month’s rally has been fanned by doubts over quality in Australia’s harvest, which wheat markets have been counting on to replenish tight global supplies of milling-grade crop.
European traders were waiting to see how U.S. markets would react when they resume trading later on Friday following Thursday’s Thanksgiving holiday.
Chicago wheat Wv1 saw profit-taking on Wednesday after hitting a new nine-year high. GRA/
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Edmund Blair)
(([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