IKAR in Mass and Industry Media

Paris wheat supported by US weather fears, smaller Russian exports

Reuters

HAMBURG/PARIS, March 17 (Reuters) - European wheat rose on Monday, supported by a jump in U.S. markets and uncertainty about Russian exports.

However, renewed euro strength against the dollar, making West EU wheat more expensive on world markets, was limiting gains, traders said.

Front month May milling wheat BL2K5 on the Paris-based Euronext exchange closed up 0.4% at 224.50 euros ($245.04) a metric ton.

At the same time, most Chicago wheat Wv1 was up 2.2%.

"The strong rise in Chicago helps but the euro is definitely not," a French trader said.

Chicago wheat futures rose on Monday as dryness and windstorms in U.S. grain belts caused concern about crop damage and on the hopes that smaller Russian exports will generate more demand for U.S. supplies. GRA/

More U.S. windstorms are forecast this week, with dryness making wheat vulnerable to damage.

"Falling Russian exports could provide a window for West EU wheat exports with a rise in Russian prices also welcome," another German trader said.

Russia's March wheat exports are estimated to fall to 1.5 million tons from 1.9 million tons in February and 2.2 million tons in January, consultancy Sovecon said on Monday. Russia’s government has sought to cut wheat exports to keep domestic flour and bread prices low.

Russian wheat export prices rose on Monday as a partial recovery in demand from importers lifted world prices more broadly, analysts said.

Russian wheat with 12.5% protein content for free-on-board (FOB) delivery in April increased by $2 to $249 a metric ton, said consultancy IKAR.

Traders also noted a rare wheat purchase by Iran, with hopes the country could buy more in the near future.

($1 = 0.9162 euros)

17.03.25

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