European wheat futures were little changed on Thursday in keeping with Chicago prices as the market steadied near key support and awaited fresh news on export demand. Benchmark November milling wheat in Paris was up 0.50 euros or 0.19 percent at 261.50 euros a tonne by 1213 GMT, as it continued to hover close to a support zone between 258 and 260 euros.
US wheat edged lower after recovering on Wednesday from steep losses in the two previous sessions. Paris wheat had fallen earlier in the week, dragged lower by soybean-driven liquidation in Chicago as funds took harvest progress and flagging export demand as a cue to sell after a record-breaking rally linked to a severe US drought.
With modest trading volumes marked by technical adjustments, operators were awaiting further indications on the export outlook for western Europe as Black Sea supply runs low. Weekly US and European Union export data later on Thursday will give some sign of demand trends.
"Given the bearish move observed since the beginning of the week, some cereal importing countries are organising new tenders," French consultancy Agritel said, citing a Tunisian tender on Thursday to buy feed barley. Iraq's state grains board purchased 150,000 tonnes of Russian-origin wheat in an international tender on Wednesday, although operators remain convinced Russia will soon fade from exports markets and will also have to import much more grain this season to make up for its dwindling stocks.
French barley was expected to be in contention in the Tunisian tender after enjoying a strong run of sales so far this season in the wake of a weather-reduced Ukrainian crop. "French barley should be offered at pretty decent prices," one trader said, adding however that Ukrainian barley could still win the business. The strong flow of wheat exports from Russia and Ukraine has left silos at French ports brimming, traders said. With sales last week to Egypt not due for shipment until November and the bulk of the maize harvest due to arrive in October, France was facing bottlenecks at ports in the coming month, they said.
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