Source: Ukragroconsult (Ukraine)
Wheat futures on Euronext rose in line with Chicago prices on Tuesday, as traders monitor drought risks for Russian sowings and await U.S. crop and inflation data to be released later this week.
December wheat futures, the most active item on the Paris-based Euronext exchange, rose 0.9 percent to 220.00 euros ($242.59) a metric ton.
Earlier, the contract had risen to 222.00 euros, down slightly from Friday’s three-week high of 222.50 euros.
Participants adjusted their positions after grain prices hit multi-week highs last week, awaiting the USDA’s monthly crop report on Thursday, which will be followed by estimates for the US corn and soybean harvests.
Investors are also waiting for US inflation data on Wednesday and the US presidential debate on Tuesday for clues on interest rates and economic policy in general.
Uncertainty over the size of this year’s summer harvest in Russia and drought conditions hampering next year’s sowing have supported the wheat market.
“The drought issue in Russia is likely driving prices, as is the drought and corn seeding in Brazil,” said one futures trader.
A late summer drought in the Black Sea region wilted corn crops and raised concerns about winter sowing.
Export competition from cheaper Black Sea crude oil prices continued to weigh on the market.
Official data released on Tuesday showed that European Union soft wheat exports for 2024/25 are 23 percent below last season’s figures, although data for France and Bulgaria are incomplete.
Short-dated September futures on Euronext (BL2U4) ended the last trading session at €188.75, down 2.7%, after hitting a contract low of €184.75 earlier.