EU wheat rebounds as Israel-Iran escalation fuels short-covering

Euronext wheat climbed on Friday as news of Israeli strikes on Iran encouraged investors to cover short positions after prices hit contract lows this week amid growing supply pressure. September wheat on Euronext settled 2.0% up at 202.75 euros a metric ton. It earlier reached a one-week high of 203.00 euros as it moved away from a contract low of 198.00 euros touched in each of the past two sessions. Israel’s raids on Iranian nuclear and military sites sent oil prices sharply higher and fuelled a risk-off mood in other financial markets. “Funds are heavily short and some shorts could be liquidated in the current environment,” Andrey Sizov, head of consultancy Sovecon, said of wheat. “Matif (Euronext) fell below 200 euros and showed no intention to climb above it until now. If things more or less stabilise in Iran/Israel, I suspect that it will continue to slide lower.” A retreat in the euro after Thursday’s 3-1/2 year high against the dollar also supported Euronext. Chicago wheat ...