Paris wheat at new high as cold sparks U.S. rally

PUBLISHED: Tue, 20 Apr 2021 18:03:19 GMT

PARIS, April 20 (Reuters) – Euronext wheat rose sharply on Tuesday, with new-crop positions setting fresh contract highs, on the back of a rally in Chicago fuelled by cold weather threatening U.S. wheat crops.

September milling wheat on Paris-based Euronext settled up 3.25 euros, or 1.6%, at 210.25 euros ($252.93) a tonne.

It earlier reached 212.25 euros, a new life-of-contract peak.

Chicago wheat rallied as traders assessed the risk that frosts could damage crops in part of the U.S. Plains, although Chicago prices later pared gains.

“There are low temperatures that could sting wheat crops, it all depends how widespread it is,” a futures dealer said.

The cold spell was contributing to weather concerns for wheat and adding to support from a rally in corn, which hit a near eight-year high in Chicago.

Euronext’s last old crop contract, May, settled up 6.50 euros at 223.00 euros a tonne, with traders citing positioning in the run-up to the contract’s expiry.

In rapeseed, May futures jumped again in more volatile trading in the run-up to their expiry next week and amid continuing tensions in global oilseed markets.

The contract rose as much as 5.2% to a 558.50 euros, a new record for a front-month price, before settling at 547.50 euros.

New-crop August rapeseed set a contract high at 500.50 euros, supported by expectations of another weather-hit harvest in Europe.

On the physical market, a lack of new export demand curbed German wheat premiums.

“The tender market is very quiet this week with the Ramadan period keeping business in the big importing countries quiet,” one German trader said.

“With Egypt looking at the new crop in its last tender, Saudi Arabia on the sidelines and South Africa looking to Russia, only Algeria remains as the main visible potential buyer of German wheat and there is no sign of a new purchase from Algeria tender this week.”

Standard 12% protein wheat for April delivery in Hamburg was offered for sale at 0.5 euros over Paris May, following trade at level of Paris May futures on Monday.

($1 = 0.8313 euros) (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Aurora Ellis)

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