EU wheat steadies as war uncertainty persists
PARIS, March 24 (Reuters) - Euronext wheat steadied on Tuesday after hitting a 2-1/2 week low the previous day, supported by a bounce in crude oil and a fall in the euro as hopes for de-escalation in the Middle East subsided.
The market also drew strength at the end of the session from news that major wheat importer Algeria had issued a purchase tender, dealers said.
May milling wheat BL2K6, Euronext's most-active position, settled 0.5% up at 203.25 euros ($235.14) a metric ton. It earlier approached Monday's low of 199 euros but again found chart support at the 200 euro threshold.
Oil prices LCOc1 rose to recoup some of their steep losses from Monday, as Iranian denials of negotiations with Washington tempered optimism about an end to the conflict sparked by comments from U.S. President Donald Trump. O/R
"For now it's status quo. Everything will depend on the negotiations and it's still early days," a Euronext dealer said of the war situation.
Grain prices have broadly tracked fluctuations in crude oil during the Middle East conflict, partly because crops like corn are widely used in biofuels and also as investors have viewed the crops as an inflation hedge.
News of the Algerian tender, to be held on Thursday, also helped underpin Euronext.
"Buyers can't really wait on Trump, so it makes sense for them to book some volumes after the price lows," the dealer said of the Algerian tender.
The European market also tracked strength in Chicago wheat Wv1, which was up around 1%. The U.S. market also drew support from drought affecting part of the country's wheat belt. GRA/
Prices at 1747 GMT |
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| Last | Change | Pct Move |
Paris wheat BL2K6 | 203.25 | 1.00 | 0.49 |
Paris maize EMAc1 | 209.00 | 0.00 | 0.00 |
Paris rapeseed COMc1 | 500.50 | 3.00 | 0.60 |
CBOT wheat Wv1 | 593.50 | 5.75 | 0.98 |
CBOT corn Cv1 | 464.50 | 5.00 | 1.09 |
CBOT soy Sv1 | 1158.50 | -5.00 | -0.43 |
WTI crude oil CLc1 | 92.60 | 4.47 | 5.07 |
Euro/dollar EUR= | 1.16 | 0.00 | -0.40 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton |
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($1 = 0.8644 euros)
