Source: Ukragroconsult (Ukraine)
Wheat futures on Euronext rose on Wednesday, tracking futures on the Chicago Mercantile Exchange, as markets found chart support after a three-day slump and traders assessed weather conditions and export prospects.
December wheat on the Euronext Paris exchange closed up 0.7% at 227.75 euros (247.50 US dollars) per tonne. The contract had previously hit a weekly low of 225.00 euros on Tuesday before recovering.
CBOT wheat started to rise after hitting a three-week low.
A further fall in the euro EUR/USD, which hit its lowest level against the dollar in two and a half months, supported Euronext, while a stabilization in crude oil prices after the previous day’s drop bolstered grain markets.
“The euro has fallen sharply and we have also reached a stable support zone on Euronext,” said one futures trader.
The wheat market was expecting a clearer picture of the impact of the Russian government’s measures to regulate wheat exports, including through a proposed minimum price and a higher export duty, sources said.
According to the millers, Turkey’s attempt to partially ease its wheat import ban has not led to a significant increase in new demand, as importers are expected to use Russian wheat already delivered and stored in bonded warehouses.
Rising prices in Russia and Ukraine have raised expectations that the supply surplus from the Black Sea growing regions would decrease.
However, better sowing weather in the Black Sea region, when the rains had already reached the drought-stricken areas of southern Russia, helped to keep prices low.
The agricultural authority FranceAgriMer lowered its monthly forecast for French soft wheat ending stocks in 2024/25 by 0.24 million tons to 2.51 million tons, a decrease of 21% compared to last season, as it still takes into account the lowest harvest in France since the 1980s.
The authority left its forecast for French soft wheat exports outside the European Union in 2024/25 unchanged at 4.0 million tons, down 61% from last season.
The data shows that financial investors have slightly increased their net short position in Euronext wheat over the past week.
