EU wheat recovers with oil before Easter break
PARIS, April 2 (Reuters) - Euronext wheat regained ground on Thursday with support from crude oil as comments by U.S. President Donald Trump tempered investor hopes of a swift end to the Iran war.
The bounce on Euronext was moderate, however, with participants adjusting positions before a holiday weekend.
Trump said on Wednesday night that the U.S. will carry out aggressive strikes on Iran over the next two to three weeks.
The remarks dampened market expectations of de-escalation in the month-old conflict and sent oil prices LCOc1 surging. However, in a further shift in sentiment, investors on Thursday took some comfort from efforts to revive shipping through the Strait of Hormuz. MKTS/GLOB
"Grain markets are tracking macro sentiment closely, with wheat supported during energy rallies but vulnerable to abrupt selloffs," British merchant ADM Agriculture said in a note.
May milling wheat BL2K6, the most active position on Paris-based Euronext, was up 1.0% at 203.25 euros ($234.65) a metric ton by 1613 GMT, recovering from a one-week low on Wednesday.
December futures BL2Z6, which have built up a large premium during the Iran war given concerns about the impact of mounting fertiliser costs on this year's harvest, were up 0.6% at 219.25 euros.
Chicago wheat Wv1 was little changed in choppy trading before the Easter holiday weekend, with the U.S. market also assessing rain relief in parched parts of the U.S. Plains. GRA/
Euronext and Chicago markets will be closed on Friday, while Euronext will also be shut on Monday.
The spread between old-crop and new-crop prices was a focus in Europe.
“This seems related to the large unsold wheat stocks in France and elsewhere in western Europe, which built up as tough Black Sea competition cut third-country exports from western Europe,” a German trader said.
“Export demand is also very weak as consuming countries delay buying in the hope of an end to the Iran war," the trader added.
Prices at 1613 GMT |
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| Last | Change | Pct Move |
Paris wheat BL2K6 | 203.25 | 2.00 | 0.99 |
Paris maize EMAc1 | 208.00 | 1.25 | 0.60 |
Paris rapeseed COMc1 | 506.00 | 1.25 | 0.25 |
CBOT wheat Wv1 | 597.50 | 0.00 | 0.00 |
CBOT corn Cv1 | 452.00 | -2.25 | -0.50 |
CBOT soy Sv1 | 1164.25 | -4.25 | -0.36 |
WTI crude oil CLc1 | 110.88 | 10.76 | 10.75 |
Euro/dollar EUR= | 1.15 | -0.01 | -0.43 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton |
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($1 = 0.8662 euros)
