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PARIS, Aug 19 (Reuters) – Euronext wheat rose on Friday, recovering with Chicago from six-month lows struck a day earlier as the market continued to assess prospects for increased exports from the war-disrupted Black Sea region.
December wheat BL2Z2 on Paris-based Euronext was up 1.3% at 310.00 euros ($311.27) a tonne by 1558 GMT.
On Thursday the contract had fallen to 301.25 euros, the weakest second-month price BL2c2 on Euronext since Feb. 25, the day after Russia began its invasion of Ukraine. GRA/EU
Over the week, the contract was showing a 5.6% fall.
A rebound in Chicago, a fall in the euro against the dollar, and talk of demand for competitively priced lower-protein wheat in France encouraged Friday’s rebound on Euronext, traders said. GRA/FRX/
Wheat markets have been pressured this week by the resumption of sea exports from Ukraine, coupled with talk of falling wheat prices in both Ukraine and Russia, which is trying to shift an expected record harvest. GRA/
That has shifted the focus away from a brisk start to the 2022/23 export season in France and the European Union as a whole.
“What could curb demand for French wheat is on the one hand increased availability in the Black Sea region and on the other the fact that the current French export pace can’t be sustained for the whole season,” one trader said.
A further 10 cargo ships are being loaded with grain in Ukrainian Black Sea ports, Infrastructure Minister Oleksandr Kubrakov said on Friday, confirming a steady pace of exports under a U.N.-brokered maritime corridor agreement.
Rain and cooler temperatures in Europe this week have also taken attention away from drought losses in maize crops, although traders were watching forecasts suggesting a return of hot weather next week.
In France, the state of maize crops declined last week to a new decade low, although the drop was more moderate than in previous weeks, data from farm office FranceAgriMer showed.
($1 = 0.9959 euros)
(Reporting by Gus Trompiz in Paris; Editing by David Holmes)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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