Milling Wheat Rises in Paris on Speculation of Demand Rebound
Milling wheat futures rose for a second day in Paris on signs demand for grain is increasing after prices tumbled. Agriculture markets were closed on the Chicago Board of Trade for Independence Day.
China, the world’s biggest wheat consumer, bought 360,000 metric tons from the U.S. in a sale reported yesterday, the U.S. Department of Agriculture said. China’s wheat imports will climb to 4 million tons in 2013-14 from 3 million tons a year earlier, the USDA’s Foreign Agricultural Service said. On July 2, Paris wheat fell to the lowest since March 2012 on signs world supplies will rebound as the Northern Hemisphere harvest starts.
“Rumors circulated that French wheat may also figure into Chinese business,” supporting prices in Paris, Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone Inc. in Dublin, said in an e-mailed report today.
Milling wheat for November delivery rose 0.6 percent to 196 euros ($255) a ton on NYSE Liffe in Paris by 12 p.m. in the French capital, extending yesterday’s 0.8 percent increase. The most-active contract is still down 21 percent this year. Global wheat production may be a record 704 million tons, the Agricultural Market Information System said today, raising its outlook from a previous forecast of 702 million tons.
Prices also gained this week after Egypt, the world’s biggest wheat importer, issued its first tender to buy the grain since February. The North African country purchased 180,000 tons of Romanian and Ukrainian supplies on July 2. Egypt swore in Adly Mansour as a military-appointed interim president today after Mohamed Mursi, the first democratically elected civilian leader, was ousted amid mass protests and political upheaval.
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