Wheat contracts on Europes Paris-based exchange moved higher on Monday as maize futures posted strong gains on both sides of the Atlantic amid renewed concern that extreme heat could impair crops.
Price moves in Europe and the U.S.
By 1505 GMT, September wheat on Euronext had climbed 1.5% to 04.50 per metric ton, equivalent to $233.46. Traders cited a softer euro and a sizable Saudi Arabian purchase as additional factors supporting prices, although market participants expect suppliers in the Black Sea region to deliver the bulk of that Saudi order.
Across the Atlantic, Chicago wheat was up about 2%. That rise was largely influenced by a rally of more than 3% in U.S. corn futures after a heatwave sweeping the U.S. Midwest heightened early concerns about potential stress to corn crops.
Maize leads the moves
On Euronext, November maize surged 3.6% to 39 per ton. The contract earlier touched a new high of 40, extending what the market described as an unusually large premium of maize over wheat.
Weather and crop condition signals
Weather forecasts indicate hot, dry conditions over France this week, with temperatures expected to approach 40 degrees Celsius in the southwest. Those conditions add to concerns for maize after crop conditions had already suffered a sharp decline following a late-June heatwave.
French farmers are projecting a 30% fall in maize production this year. Market participants warned that a weak maize harvest in France could lift demand for European maize imports and increase the use of wheat in livestock feed rations.
Factors capping wheats advance
Despite upward pressure from maize and weather risks, wheat prices encountered resistance. Reports of strong volumes being delivered in the ongoing French wheat harvest and expectations of high production levels in the Black Sea export region are seen as constraining further price gains.
The balance of supportive and offsetting factors left European wheat higher on the day, with maize market dynamics and regional weather developments driving the moves.