European wheat futures closed slightly firmer on Tuesday as the monthly world grain and oilseeds supply and demand estimates from the US Department of Agriculture (USDA) gave some support to US markets. March milling wheat, the most active contract on the Paris-based Euronext exchange, unofficially closed with a gain of 0.50 euros, or 0.3 percent, at 161.25 euros ($189.16) a tonne.
The contract continued to hold chart support at 160 euros, which has helped to cushion the impact of losses in Chicago, where wheat fell to an 11-month low on Monday before steadying on Tuesday. US wheat in Chicago was up 1 percent after the monthly world agricultural supply and demand estimates released by the USDA at 1700 GMT. Traders in France were also awaiting French supply and demand data on Wednesday while activity was generally winding down in the run-up to the year-end holiday season.
Traders expect French farming agency FranceAgriMer to trim its forecast for French soft wheat exports outside the EU in its monthly update on Wednesday, reflecting a slow start to the season in the face of stiff Russian competition. However, news that Morocco has launched a tender to buy European Union wheat under an annual quota could bring fresh sales for French wheat in the New Year on top of recent shipments.
In Germany, cash market premiums in Hamburg were generally flat, with internal German feed wheat sales rather than exports providing the demand. Standard bread wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at between 3.50 euros and 4 euros over Paris March.
"Russian and other Black Sea region wheat is still being shipped out in large volumes in competition to west EU wheat, with no real signs the winter is disrupting their export loadings," one German trader said. "Russian wheat was again the cheapest offer in Egypt's wheat tender today. "German feed makers rather than exports are once more providing the main demand." Feed wheat prices in Germany's South Oldenburg market were again above milling wheat.
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