Euronext Wheat Rises in Short-Covering and Chicago Rebound
Euronext wheat rose on Thursday, driven by short for next month and an abundance of rebounds that were deflected exports in Chicago.
September Wheat (BL2U5) in Euronext settled 1.9% higher in 197.50 Euros ($ 229.81) per metric ton, after approaching the lowest contract earlier this week.
December Wheat (BL2Z5) ended 1.6% up at 201.50 Euros per ton, recovered from the lowest contract 197.50 Euros on Wednesday.
The large short position held by investors has triggered a short trigger in September the time before the end of the option next week, according to the dealer.
Chicago Wheat ZW1! Rally is around 2% to recover from the lowest five years, driven by the sale of weekly US exports that are higher than expected that fight the supply pressure from the harvest of the northern hemisphere.
“US wheat is very competitive during the first phase of this new marketing year and export America is light,” said Expana commodity data in a report.
The company, which has acquired a strategy wheat consultation consulting, increases the estimated harvest of the ongoing European Union wheat while increasing the prospect of EU wheat exports.
However, he reduced the estimated EU corn plants for the second month due to hard weather in southeast Europe.
The estimated reduced is added with an estimated high temperature for the southern French corn belt supported by Euronext Magarch Futures, along with a rebound at Chicago Price ZC1!, Dealer said.
Corn November (EMAX5) in Euronext ended 2.1% higher in 192.50 euros per ton.
Warm weather must let the wheat harvest increase in Northern Europe after the delay of rain since the end of July which threatened to damage the quality of seeds.
The German wheat harvest is continued on a large scale while the Danish harvest is likely to start again during the weekend.
“It seems that rain in recent weeks has caused quality damage,” said a German trader.
“So little German wheat has been harvested so far that you really cannot make a realistic assessment, but Germany is likely to harvest more wheat feed than expected.”
There is a market talks that the delay of rain has prevented exporters in Baltic countries buying enough wheat for August exports, which has the potential to lead to loading transferred to France.
An increase in the amount of wheat feed produces demand. A Republic of Ireland’s importer tried to buy 7,000 tons of wheat feed for October delivery with a premium of around 5-6 Euros and goods including (C&F) more than euronext December.
Source: Reuters
