European wheat edged higher on Tuesday, supported by a rise on US markets where wheat futures were on track for their fourth straight day of gains as traders continued to cover short positions ahead of the year's end. March milling wheat on Paris-based Euronext, was up 0.25 euro at 165.00 euros a tonne by 1645 GMT.
December expired at a contract low of 155.50 euros a tonne on Monday. A Euronext broker said 100 lots went to delivery. CME Group's March EU wheat contract was untraded. The December contract expires on Wednesday. Some 59 lots had gone to delivery by December 12. "There is little activity in the market and there is a risk that we'll be left out of the upcoming tenders," a trader said.
Algeria's state grains agency OAIC is tendering to buy optional-origin soft milling wheat for February 2017 shipment with a bidding deadline on Wednesday. Traders expected plenty of offers for Argentine wheat. Tunisia is also holding a tender on Wednesday for 92,000 tonnes of soft milling wheat, 50,000 tonnes of durum wheat and 50,000 tonnes of feed barley, traders said.
In its first estimate for next year's crop, France's farm ministry on Tuesday estimated the area sown with winter soft wheat for the 2017 harvest at 5.2 million hectares, up 0.2 percent compared with this year. German cash market premiums in Hamburg were stable, supported by hopes some of the Saudi Arabian purchase of 725,000 tonnes of wheat on Monday will be sourced in Germany.
Standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 4 euros over the Paris March contract. Buyers were seeking 3 euros over. "It looks like exporters already have the nearby supplies for the Saudi Arabian positions purchased in their books," one German trader said. In Poland, prices were also underpinned by hopes Polish wheat would supply part of the Saudi purchase. "Exporters are still very active and wheat prices are supported by the Saudi tender with hopes at least two to three cargoes will be delivered from Poland," one Polish trader said.
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