GRAINS-Heatwave fuels rally in Euronext wheat while Chicago prices ease

Updates with European trading, changes dateline

- Euronext wheat futures climbed around 2% on Monday as an intensifying heatwave in Europe raised concerns about crop damage, though Chicago wheat fell for a second session as a firm dollar and falling oil prices weighed on the U.S. market.

Chicago corn eased while soybeans ticked higher with support from stronger vegetable oil markets.

September wheat BL2U6, the most-active contract on Paris-based Euronext, was up 2.4% at €206.00 ($235.83) per metric ton at 1157 GMT, after hitting a three-week high.

Market concerns about heat damage had focused so far on corn in France and Spain. But with highs around 40 degrees Celsius (104 degrees Fahrenheit) forecast in France for several days and hot conditions spreading into Central Europe, worries about wheat were also emerging, traders said.

"The impact in France isn't that obvious but for Germany and Poland it could be pretty unfavourable," a European trader said.

AgResource has reduced by more than 2 million tons its projection for this year's European Union wheat production due to the heat while also anticipating a deterioration of milling quality in the French crop, Bill Tierney, the U.S. consultancy's chief economist, said in a LinkedIn post.

November corn EMAX6 on Euronext was up 2% at €217.25 a ton after hitting a near two-month high.

On the Chicago Board of Trade, the most-active wheat contract Wv1 was down 0.5% at $6.11-1/4 a bushel, extending a fall from Thursday when the contract retreated from a two-week peak.

Chicago markets were closed on Friday for the Juneteenth holiday.

A one-year high for the dollar index =USD and a slide in crude oil sparked profit-taking in Chicago grains before the U.S. holiday weekend.

The dollar held steady on Monday while oil slipped on signs of progress in U.S.-Iran talks following last week's conclusion of an outline deal to halt their war. O/R

An advancing U.S. harvest and favourable crop prospects in Russia and Ukraine have taken attention away from drought damage to the U.S. hard red winter wheat crop.

CBOT corn Cv1 lost 0.1% to $4.17 a bushel while CBOT soybeans Sv1 added 0.4% to $11.47-3/4 a bushel.

Abundant rainfall and moderate temperatures have curbed corn and soybean prices this month, though traders say wet conditions may start to impede corn growth.

Soybeans drew some support from a bounce in soyoil prices BOcv1, which tracked strength in other vegetable oils. POI/

Traders are closely monitoring signs of renewed Chinese buying.

The U.S. Department of Agriculture last week confirmed the sale of 132,000 tons of U.S. soybeans to China for delivery in the 2026/27 marketing year, marking the first publicly reported Chinese purchase since a May summit between Presidents Donald Trump and Xi Jinping.

Prices at 1157 GMT

Last

Change

Pct Move

CBOT wheat Wv1

611.25

-2.75

-0.45

CBOT corn Cv1

417.00

-0.50

-0.12

CBOT soy Sv1

1147.75

5.00

0.44

Paris wheat BL2c1

206.00

4.75

2.36

Paris maize EMAc1

219.25

5.75

2.69

Paris rapeseed COMc1

512.00

7.75

1.54

WTI crude oil CLc1

76.50

-0.10

-0.13

Euro/dollar EUR=

1.14

0.00

-0.17

Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton

($1 = 0.8735 euros)