EU wheat prices rebounds from two-week low as Chicago rallies
Euronext wheat rose on Thursday, recovering from a two-week low touched in each of the two previous sessions, as Chicago prices rallied on upbeat export news and some traders saw a recent pullback as overdone given weather-hit supply in Europe.
December wheat, the most active contract on the Paris-based Euronext exchange, settled 2.75 euros, or 1.3 percent, higher at 210.25 euros ($238.93) a tonne.
The contract had fallen to 205.50 euros on Tuesday and Wednesday, a price not previously seen since Aug. 1, but found chart support at that level.
Chicago wheat climbed 2 percent in U.S. trading on Thursday, recouping losses from Wednesday as higher than expected weekly U.S. export sales along with news of a purchase of North American wheat by Iraq boosted sentiment.
Wheat markets also drew support from a rally in soybeans after China, the world’s top importer of the oilseed, announced a new round of talks with the United States in a trade dispute.
Wheat prices have been curbed since last Friday’s U.S. Department of Agriculture monthly crop report made smaller than expected cuts to weather-affected global wheat production.
But traders said the outlook remained bullish for prices.
“We’ve had the market digesting the USDA report and it’s also August with not many physical operators around, so you’re liable to see some speculation on the futures market,” a French cash broker said. “But the market remains in an upward trend.”