Home / Commodities / Commodity News / Paris wheat rises as Chicago flurry offsets harvest pressure

Paris wheat rises as Chicago flurry offsets harvest pressure

Euronext wheat ended higher on Friday as a rebound in Chicago grain futures helped offset supply pressure from harvesting in Europe, including rising expectations for the French wheat crop.

December milling wheat, the most active contract on Paris-based Euronext, settled 2.50 euros, or 1.4%, higher at 181.50 euros ($203.73) a tonne, recouping a similar-sized loss from Thursday.

Earlier on Friday the contract edged down to a new one-week low of 178.75 euros, before rebounding in step with Chicago.

U.S. wheat, corn and soybean futures climbed sharply, with traders citing bargain-buying after losses this week, as well as renewed hopes of progress in U.S.-Chinese talks over a year-old trade dispute.

The rally in futures contrasted with downward pressure on physical premiums in western Europe as farmers advanced in harvesting what is expected to be a large crop.

“The harvest is continuing to look like being a bumper one,” a French cash broker said. “The harvest plus a lack of export deals are weighing on premiums.”

Traders were increasingly anticipating a French soft wheat crop of 38 million tonnes or above, compared with 34 million last year.

Weekly data from farm office FranceAgriMer showed 33% of the soft wheat crop had been harvested by July 15.

In Germany, premiums in Hamburg dipped as the market braced for the arrival of substantial volumes of wheat from Germany’s new harvest, expected to gather speed next week.

Standard bread wheat with 12% protein for September onwards delivery in Hamburg was offered for sale at 4 euros under Paris December against 3.5 euros under on Thursday. Buyers were seeking at least 5.0 euros under.

“The weekend in Germany is expected to be rainy but hot, dry weather is forecast for all of next week which should allow wheat harvesting to get underway on a large widespread scale,” one German trader said.

“Large new crop supplies should start arriving. We should start getting a better picture of the crop quality, there is general agreement the crop will be large.”
Source: Reuters (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping