Market snapshot
Euronext September wheat was unchanged at €203.50 per metric ton at 1620 GMT on Thursday, after earlier rising to €205.00 - its highest level since June 3 - before settling back to previous-session levels. The earlier intraday high marked a two-week peak for the contract.
Cross-market pressures
Chicago wheat fell almost 2% on the day, pressured by a firmer dollar index and a decline in oil prices, factors that came into focus ahead of Friday's U.S. holiday closure. Those losses in Chicago helped offset upward pressure on European prices coming from weather and regional demand signals.
Drivers supporting Euronext
Two main factors provided support for Euronext wheat despite the drop in Chicago. First, a decline in the euro boosted the relative appeal of European grains. Second, deteriorating hot weather in France continued to underpin price concerns for European maize and wheat, with forecasts indicating temperatures could reach as high as 40 degrees Celsius and that the heatwave may last for at least a week.
Commercial buying
Traders reported that Algeria's state grains agency, OAIC, purchased around 800,000 tons of wheat on Wednesday. That sizable purchase offered additional market support. At the same time, market participants tempered their reaction to the tender because expectations persisted that Black Sea origins would provide the bulk of shipments.
Implications and outlook
For now, Euronext prices held steady as opposing forces balanced each other: regional weather and a major procurement tender supported European values, while weakness in U.S. futures and related macro drivers limited upside. The balance between these influences will determine near-term price direction, with both weather developments in France and the competitive position of Black Sea origins noted by traders as factors to watch.
Note: All price levels and market events are reported as provided by market participants.