PARIS, March 27 (Reuters) - European wheat prices rose
on Monday, extending the previous session's rally on bargain
buying and ongoing uncertainty about the fate of the Black Sea
corridor for grains supplies.
May milling wheat on Paris-based Euronext settled
2.8% higher at 266.50 euros a tonne, up from a 18-month low of
244.00 euros hit last week.
A rise in crude oil prices and financial markets were also
supportive, traders said. Traders were assessing uncertainties over the Black Sea
grains deal after Russian business newspaper Vedomosti on Friday
reported that Moscow could recommend a temporary halt in wheat
and sunflower exports.
Sources later told Reuters that Russia had no plans to halt
wheat exports but wanted exporters to ensure prices paid to
farmers were high enough to cover average production costs.
"There is a lot of uncertainty about the deal. Prices had
fallen so low that there is renewed interest," a trader said.
"Still, that doesn't mean that we are in a long-lasting
rebound. Russian wheat is likely to continue to put pressure on
European bids in international tenders," the trader added.
Morocco has emerged as the biggest export outlet for
European Union wheat in 2022/23 as sales to other destinations
have been curbed by revived Black Sea competition after war
disruptions eased.
Prices at 1730 GMT
Last Change Pct
Move
Paris wheat 266,50 7,25 2,80
Paris maize 260,75 7,00 2,76
Paris rapeseed 470,00 13,00 2,84
CBOT wheat 701,00 12,50 1,82
CBOT corn 646,75 3,75 0,58
CBOT soy 1442,25 14,00 0,98
WTI crude oil 72,14 2,88 4,16
Euro/dlr 1,0790 0,00 0,29
Most active contracts - Wheat, corn and soy US
cents/bushel, Paris futures in euros per tonne
(Reporting by Sybille de La Hamaide. Editing by Jane Merriman)
