Paris Wheat Futures Rise in Record 12-Day Rally as South America Stays Dry
Milling wheat futures rose for a 12th day in Paris, the longest rally for the most-active contract since the grain started trading in the French capital in 1999, amid concern dry weather will damage South American grain crops.
Parts of Argentina and south Brazil were forecast to have more dry and hot weather early this week, resulting in crop stress for corn and soybeans, AccuWeather Inc. said in a Dec. 30 report. Argentina is the world’s second-largest corn shipper after the U.S.
“The markets are again demonstrating firmness, still in a context of a very dry weather situation for the South American continent,” Agritel, a Paris-based farm adviser, wrote in a note today. “There’s little change expected in Argentina this week, with high temperatures and little or no precipitation.”
March-delivery wheat advanced 1.4 percent to settle at 198 euros ($256) a metric ton on NYSE Liffe in Paris, rising 12 percent over a 12-day period. Wheat fell 23 percent in the French capital last year, the biggest slide in three years.
Texas, which grows about 6 percent of U.S. winter wheat according to government data, will remain dry this week and possibly longer after rain in December brought drought relief, AccuWeather said. More than 80 percent of the state is still under severe drought conditions, according to the forecaster.
Rapeseed for February delivery added 0.9 percent to 442.25 euros a ton, after the oilseed slipped 12 percent last year. Corn for March delivery traded in Paris climbed 1.8 percent to 200.75 euros a ton, following a 16 percent slide in 2011.
To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
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