Euronext wheat and rapeseed futures rose last week after lower-than-expected official forecasts of Canada’s drought-hit harvest rekindled supply concerns.
Benchmark December milling wheat on Paris-based Euronext settled up four euros, or 1.7 per cent, at 243.00 euros ($287.37) a tonne, extending a technical rebound.
The wheat market was pressured last week by signs of improving production prospects, including an increased projection of world wheat supplies by the U.S. Department of Agriculture.
However, Statistics Canada reduced its forecast of all-wheat production in the country to 21.7 million tonnes, slightly below the average estimate in a Reuters poll.
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In France, the Farm Ministry reduced its forecast for the main soft wheat harvest by 600,000 tonnes, though it would still be 24 per cent bigger than last year’s poor crop.
Brisk demand for European wheat, helped by relaxed quality requirements from some importers after a rain-affected harvest in Europe, was also underpinning prices.
Weekly European Union data showed soft wheat exports so far in 2021-22 were well ahead of last season’s pace.
“Physical demand is there but export prices are getting high so we’ll have to see how importers react,” one futures dealer said.
