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GRAINS-EU wheat climbs to 13-1/2 year high, U.S. prices ease

GRAINS-EU wheat climbs to 13-1/2 year high, U.S. prices ease

reuters.com · 11/11/2021 05:28
GRAINS-EU wheat climbs to 13-1/2 year high, U.S. prices ease

Chicago grain, oilseed prices ease as dollar surges

Russia export curbs would further tighten wheat supplies

Adds quote, updates prices

By Nigel Hunt

- European wheat futures climbed to a 13-1/2 year high on Thursday, boosted by concern that global supplies could tighten further, while a strong dollar weighed on U.S. grain and oilseed prices.

March milling wheat on Paris-based Euronext BL2c2 was up 0.35% at 290.75 euros a tonne at 1014 GMT after peaking at 292 euros - the highest since February 2008.

Dealers said the prospect that top wheat exporter Russia could curb exports helped to support a market where supplies are already tightening.

Russia may change the way it calculates grain export taxes if prices rise further, Agriculture Minister Dmitry Patrushev said. Russia also plans to set export quotas for the first half of 2022. nL1N2S11CC

"If a higher export tax were to be introduced and then export quotas at a later date, the supply situation on the wheat market would tighten further, Commerzbank said in a note.

Russia exported 23.9 million tonnes of wheat during the first nine months of 2021, down from 24.7 million in the same period a year earlier, official customs data showed on Thursday. nAZN01SXSH

A strong dollar, however, exerted downward pressure on Chicago wheat futures, with the most active contract Wv1 down 0.5% at $7.99-1/4 a bushel.

The dollar rose to 16-month highs against the euro and other currencies on Thursday after the hottest U.S. inflation reading in a generation encouraged bets on interest rate hikes. FRX/

Chicago soybeans Sv1 fell 0.3% to $12.13-1/2 a bushel, while corn Cv1 was down 0.4% at $5.66-3/4 a bushel.

(Additional reporting by Naveen Thukral in Singapore Editing by Ramakrishnan M. And Mark Potter)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))