HAMBURG: European Euronext wheat futures rose on Monday as signs of renewed importer demand helped prices to recover from a recent slide.
March milling wheat on the Paris-based Euronext exchange unofficially closed with a gain of 2.50 euros, or 0.8%, at 286.00 euros ($323.2) a tonne.
The contract earlier fell to 279.50 euros but found technical support at that level before rebounding to fill a chart gap created during last week’s fall.
News that Turkey had issued a tender to buy 320,000 tonnes of wheat added to a wave of activity from importers after a tender issued by Algeria and Chinese purchases of French wheat reported by traders in the past two weeks.
“Prices have turned a bit firmer. There are tenders and French wheat looks competitive,” one French trader said.
The import demand has countered pressure from improving supply prospects, including a drier spell in Australia after a rain-hit start to harvesting and raised forecasts for Argentina’s crop, traders added.
But in Germany, traders were disappointed that the new wheat purchase tender by Algeria, a major customer for German wheat, will again be conducted with terms helping offers of rival Russian wheat.
“Algeria looks to be serious in its intention to get more offers of Russian wheat in its tenders,” one German trader said.
In Poland, wheat prices rose despite thin demand in the past week, helped by movement in currency exchange rates.
Exporter purchase offers for 12.5% protein Polish wheat rose about 50 zloty on the week to about 1,370 zloty (296.2 euros) a tonne for January delivery to ports.
No new large vessels are reported to be loading wheat in Poland for export outside the EU, one Polish trader said. Only corn exports, mostly for the internal EU market and in relatively small coastal freighters, he added.
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