Paris Wheat Rises to 7-Week High on Dry Weather, Algerian Tenderby
Dryness hurts crops in half of former Soviet Union wheat belt
Algeria issued tender to buy wheat for November, December
Milling wheat jumped to the highest in more than seven weeks in Paris as dry weather threatens crops in the Black Sea region and Algeria, the world’s third-largest importer, issued a tender to buy the grain.
Dryness in former Soviet Union states is hurting wheat plantings in half of the growing belt and rainfall in the next 10 days will remain "very limited," Commodity Weather Group said in a report e-mailed Tuesday. Algeria issued a tender to buy the grain for shipment in November and December, Agritel said in an e-mailed report.
"Weather forecasts are showing persisting dry conditions and it should raise worries for good crop development before start of winter," Agritel said, referring to the Black Sea region. Traders involved in participating in tenders are hoping for "a French win" on the Algerian request for purchases, the Paris-based consultants said.
Paris wheat for December delivery climbed as much as 1.5 percent on Euronext to 182 euros ($205) a metric ton, before trading at 180.50 euros a ton by 11:29 a.m. London time. The grain used to make bread is down 10.3 percent this year as French wheat has been facing competition from Russia and Ukraine, where prices have been lower.
Ukrainian milling-wheat prices were at $188.5 a ton Monday, according to data from UkrAgroConsult compiled by Bloomberg. Russian grain for loading at the port of Novorossiysk was at $183 a ton Friday, data from the Moscow-based Institute for Agricultural Market Studies, or IKAR, showed.
"Europe, especially France, continues to find wheat exports an issue as Black Sea continues to dominate," Gleadell Agriculture Ltd., a trader based in Gainsborough, England, said in a report on its website Wednesday.
On the Chicago Board of Trade, wheat for December advanced 0.7 percent to $5.295 a bushel as corn for the same month was little changed at $3.98 a bushel. Soybeans for November rose 0.2 percent to $8.90 a bushel.
"The grain and oilseed markets are eagerly awaiting the latest forecasts from the U.S. Department of Agriculture, which are due to be published on Friday," Commerzbank AG said in an e-mailed report. A reduction in the USDA crop forecast is expected for corn and soybeans, the bank said.
Soybean meal for December delivery gained 0.5 percent to $305 for 2,000 pounds.