ReutersReuters

Euronext wheat steadies after fall

Refinitiv1 دقيقة للقراءة

European wheat futures edged up on Friday after a two-day drop, with a slight easing in the euro and cold weather forecast in Argentina lending support, dealers said.

December wheat (BL2Z5) on Euronext's Paris-based market settled 0.8% up at 189.25 euros ($220.99) a metric ton. It earlier equalled Thursday's one-week low of 187.25 euros before recovering.

Over the week, the contract was unchanged.

Grain traders were also watching developments in U.S.-Chinese talks over their trade standoff and renewed moves by U.S. President Donald Trump to end the war between Russia and Ukraine.

December led gains on Euronext, with dealers pointing to short-covering by investment funds that have a large short position concentrated in the front month.

"There seems to be renewed covering of December positions, perhaps because of the cold weather risks in Argentina," one futures dealer said.

A cold front forecast over Argentina's agricultural heartlands next week could affect wheat yields, the Buenos Aires grains exchange said on Thursday.

That tempered recent expectations of a bumper Argentine harvest and also offset pressure from cheap Argentine export prices.

Talk that importers in Morocco, France's main overseas market, had bought Argentine wheat weighed on Euronext December prices on Thursday.

The euro EURUSD ticked down against the dollar after rebounding from a two-month low struck on Tuesday.

Chicago wheat ZW1! was also firm as a rally in corn helped it move away from a five-year low.

Euronext front-month prices remained underpinned by a steady flow of French exports, including two wheat cargoes bought on Wednesday by Egypt's state grains buyer, according to sources.

Ample global supply nonetheless hung over the market, with favourable sowing conditions in Europe adding to supply pressure.

In France, a dry start to October has helped farmers advance in wheat planting before showers next week are expected to bring beneficial soil moisture.

French farmers had sown 27% of the planned soft wheat area for next year's harvest by October 13, against 5% a week earlier, farm office FranceAgriMer said on Friday.

Less-active deferred positions on Euronext fell to new contract lows before steadying by the close.

($1 = 0.8564 euros)

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