Euronext Wheat Prices Rise Amid Chicago Futures Rebound and US Economic Uncertainty
Eurozone wheat prices rose on Euronext in reaction to Chicago Futures rebounding from their four-week low. The December wheat price on Euronext gained 1.6% to EUR232 ($268.22), marking a weekly increase of 1.8% after hitting a three-week low on Wednesday.
The recovery was also supported by the US economy unexpectedly losing jobs in July, causing the dollar to fall. This boost, combined with positioning ahead of next week's USDA crop forecasts, contributed to Chicago wheat prices rising as much as 2%. However, traders remain cautious due to ongoing disruptions to Black Sea grain exports.
A recent note from British merchant Frontier Agriculture stated that 'the market is finely balanced.' This balance is reflected in the current high EU wheat prices, which are reducing demand from North African and Middle Eastern buyers who also receive their own harvests. Furthermore, France's Agriculture Ministry has lowered its estimate for this year's soft-wheat crop to 31.9 million tons due to heatwaves affecting wheat production.