EU wheat at new three-month high on Latam weather
Posted by Labels: European Union (EU), Futures WheatEuropean milling wheat futures firmed for a 12th straight session on Monday, with benchmark prices again hitting a highest level in more than three months, as a weak euro and weather worries in South America maintained buying momentum.
The Paris-based market also drew support from covering of positions on the front-month January contract ahead of its expiry next week, traders said.
Volumes were light with US and UK futures markets closed for a new year holiday and with the cash market in France still on standby until grain co-operatives reopen on Tuesday.
The return of operators this week would show whether the rally had the momentum to test resistance levels either side of 200 euros, traders said.
The most active March milling wheat contract was up 2.50 euros or 1.28 percent at 197.75 euros a tonne by 1158 GMT.
It earlier climbed to 198.00 euros, a level last seen on the contract on September 20.
January milling wheat continued to trade higher than deferred contracts, adding 2.50 euros or 1.23 percent to 205.00 euros.
Wheat like other grains has rallied since mid-December as the market has become concerned that adverse weather in big exporters Argentina and Brazil will tighten global supply, especially given low corn stocks in the United States.
"This morning the market is again showing a firm tone, with the ongoing context of very dry weather in the South American region," grain analysts Agritel said in a note.
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