PARIS: European wheat prices rose on Thursday on the back of concerns about global supplies, notably in the Black Sea region, but gains were capped by a strong euro that makes European grains less competitive on the world market.
Benchmark December milling wheat on Paris-based Euronext, was 1.3 percent higher by 1624 GMT at 180.25 euros a tonne.
In Chicago, wheat gained for a second straight session with the most traded contract up 1.4 percent, on bargain buying following the market’s recent drop and on a weather-reduced wheat crop in Russia, the world’s top exporter.
French consultancy Agritel said on Thursday said this year’s wheat production in Russia was expected to be 67.4 million tonnes, down 21.5 percent from 2017’s record harvest after adverse weather affected winter and spring crops.
The estimate was below the 68.50 million tonnes projected by the US Department of Agriculture (USDA) in a world crop report on June 12.
World grain prices have moved in volatile trade this week, under pressure from trade tensions between China and the United States but European wheat was less affected, supported by concerns about the crop in the Black Sea, and particularly in Russia, the world’s largest wheat exporter.
“European markets are looking east, towards the Black Sea, where production remains undermined by dryness,” Rabobank said in a note.
Source: Brecorder
