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Business Recorder
4 days ago
- Business
- Business Recorder
EU wheat rebounds
PARIS: Euronext wheat climbed on Friday as news of Israeli strikes on Iran encouraged investors to cover short positions after prices hit contract lows this week amid growing supply pressure. September wheat on Euronext was up 1.8% at 202.25 euros a metric ton by 1541 GMT, moving away from a contract low of 198.00 euros touched in each of the past two sessions. Israel's raids on Iranian nuclear and military sites sent oil prices sharply higher and fuelled a risk-off mood in other financial markets. 'Funds are heavily short and some shorts could be liquidated in the current environment,' Andrey Sizov, head of consultancy Sovecon, said of wheat. 'Matif (Euronext) fell below 200 euros and showed no intention to climb above it until now. If things more or less stabilise in Iran/Israel, I suspect that it will continue to slide lower.' A retreat in the euro after Thursday's 3-1/2 year high against the dollar also supported Euronext. Chicago wheat also rallied, recovering from a four-week low. Expectations of abundant Northern Hemisphere supply and stiff export competition continued to hang over the wheat market. Tunisia bought 100,000 tons of optional-origin wheat in a tender on Friday, welcome demand after a period of slack importer buying. But traders cautioned Black Sea wheat held a strong price lead over the west EU for the July/August shipment period Tunisia sought. Russian and Romanian wheat for July were on Friday around $221-$224 a ton FOB, about $10 a ton cheaper than French, depending on Euronext and exchange rate moves, they said. Cheap offers of Ukrainian new-crop feed wheat were seen as low as 192 and 197 euros a ton including delivery to north Germany/the Netherlands. But buyers were restrained, hoping for even lower prices pending the outcome of Ukraine's harvest as well as details on EU import quotas for Ukrainian grain. Improving harvest prospects in Europe also remained a curb on prices. French soft wheat ratings improved slightly last week, according to farm office FranceAgriMer, though traders are now monitoring a hot spell this week and dry weather forecast for the rest of June to see if this hurts wheat crops and accelerates winter barley harvesting. In Germany, widespread sunshine was expected to give wheat and rapeseed crops a further boost after repeated rain since late May. 'Wheat growing conditions can almost be described as perfect in parts of Germany,' one trader said.
Zawya
21-05-2025
- Business
- Zawya
Wheat rises to one-month high, corn and soybeans also extend gains
PARIS/CANBERRA - Chicago wheat futures extended gains on Wednesday to a one-month high, supported by a weaker dollar and short-covering encouraged by concerns over Northern Hemisphere production. Corn continued to track strength in wheat as it reached a new one-week peak. Soybeans also rose to a near one-week high, supported by a rise in crude oil and fears that heavy rains may have damaged soy crops in Argentina. The most active wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $5.48-3/4 a bushel at 1103 GMT, after reaching $5.51, its highest since April 23. The contract had rallied 3.2% on Tuesday as an unexpected decline in U.S. wheat crop ratings and reports of adverse weather in China and Russia triggered short-covering by investors after prices hit a five-year low last week. The gains were more modest on Wednesday, with traders and analysts cautioning that crop damage in China and Russia may be limited and overall Northern Hemisphere harvest prospects still favourable. "The funds have been buying wheat for a week covering their large short position in July futures. Things accelerated yesterday after the market clearly broke above the 20-day moving average," Andrey Sizov, head of crop consultancy Sovecon said. "At this stage I'm not sure that fundamentally recent news was such a big bullish story," he said. Parts of China including the major wheat-producing region of Henan saw temperatures reach 40 degrees Celsius (104 degrees Fahrenheit) earlier this week, though traders said the heat did not appear to last long enough to pose a serious threat to crops. In Russia, the world's biggest wheat-exporting country, traders believe that recent frosts have not caused significant damage either. A lack of rain is nonetheless expected to deplete the harvest in Rostov, Russia's largest grain region, the head of the local grain lobby group said. CBOT soybeans rose 0.7% to $10.60 a bushel and corn ticked up 0.2% to $4.55-1/4 a bushel. The U.S. dollar weakened again on Wednesday after cautious remarks about the U.S. economy by Federal Reserve officials. A rise for crude oil, after a report that Israel could be preparing to strike Iranian nuclear facilities, lent some support to oilseeds like soybeans, which are partly used to provide vegetable oil for biofuel. Prices at 1103 GMT Last Change Pct Move CBOT wheat 548.75 2.75 0.50 CBOT corn 455.25 0.75 0.17 CBOT soy 1060.00 7.00 0.66 Paris wheat 208.50 -0.50 -0.24 Paris maize 198.75 -0.75 -0.38 Paris rapeseed 485.00 -3.50 -0.72 WTI crude oil 62.55 0.52 0.84 Euro/dlr 1.13 0.01 0.51 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton.
