Paris wheat extends run to new contract highs

PARIS: Euronext wheat continued a rally on Thursday to set fresh contract highs, as a further slide in the euro and the ongoing war in Ukraine underscored export prospects for EU wheat.

New-crop December on Paris-based Euronext was up 1.1% at 375.50 euros a tonne by 1520 GMT, after earlier reaching a life-of-contract peak at 380.50 euros.

Price moves on Euronext also reflected exiting of positions on May futures as the front-month contract entered its pre-expiry period, dealers said.

May futures were down 1.1% at 413.75 euros, after earlier rising to a contract high at 427.75 euros.

The euro fell below $1.05 to its lowest in more than five years against the dollar.

Investor worries over economic growth and heightened tensions with Moscow, which halted gas supplies to Poland and Bulgaria on Wednesday, have weighed on the euro.

Russia’s gas supply curbs, seen as a response to Western sanctions over Moscow’s invasion of Ukraine, reinforced market expectations of a protracted conflict that will cause lasting disruption to Black Sea grain exports.

Wheat prices have also been supported by adverse weather in the United States, with some winter wheat suffering from drought and spring wheat planting delayed by cold, wet conditions.

New-crop November maize (corn) on Euronext rose to a contract high of 333.75 euros a tonne, supported by a near 10-year peak for Chicago corn as US planting delays added to global supply concerns.

Rapeseed prices consolidated below contract highs set the previous day as oilseed markets assessed the start of an Indonesian export embargo on some palm oil products.

Indonesia unnerved investors on Wednesday by unexpectedly widening the scope of the embargo, but traders said the measure, aimed at curbing internal cooking-oil prices, was not expected to last more than a few weeks.

August rapeseed was up 0.2% at 878.25 euros a tonne, after setting a contract high at 891.00 euros on Wednesday.

Source: Brecorder