Euronext wheat rallied on Thursday to its highest in almost six weeks as fresh weakness in the euro and a continuing run of import tenders boosted export prospects. A rebound in Chicago futures after a five-session fall also lent support to Paris prices. Benchmark December milling wheat on the Paris-based Euronext exchange was up 2.25 euros, or 1.3%, at 173.00 euros ($189.16) a tonne by 1619 GMT.
It earlier touched its highest level since August 16 at 173.25 euros after breaching chart resistance around 172 euros. Premiums on the French physical market were also firmer, brokers said. The euro fell to a 28-month low against the dollar, making western European grain cheaper in dollar-priced export markets.
After a cargo of French wheat was purchased by Egypt alongside four Russian cargoes in a tender on Wednesday, the launch of a tender by Saudi Arabia to buy one million tonnes of feed barley kept attention on demand from grain importing countries.
"There's some decent momentum on the US wheat market," one futures dealer said.
"I'm not sure how much the French sale to Egypt is helping Matif (Euronext) but the Saudi barley tender is encouraging participants to pay a bit more."
The export outlook in France was also being boosted by the start of Morocco's import season in October. Port data on Thursday showed a fourth vessel was due to call at Rouen to load wheat for Morocco, which would take the volume to be exported to around 130,000 tonnes.
In Germany, wheat premiums in Hamburg were again flat amid a demand lull while attention turned to the Saudi barley tender. Standard bread wheat with 12% protein for October delivery in Hamburg was offered for sale unchanged at 2 euros under Paris December. Buyers sought at least 3 euros under Paris.
"I think the Saudi barley tender will be a fight between the European Union, the Black Sea region and possibly Argentina to win the business," one German trader said. "Hopes are Germany may win part of the sale but there is heavy price competition from the Baltic States, especially Lithuania."
FOB barley premiums in German ports for the Saudi shipment period firmed to 11 euros under Euronext contracts against 14 euros under on Wednesday. But premiums for rival Lithuanian barley for the Saudi shipment period also firmed to 12 euros under Paris contracts against 16 euros under on Wednesday. In dollar terms FOB prices for Lithuanian and German barley was on Thursday almost the same at just under $174 a tonne.
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