Paris wheat futures rise from four-week low

European wheat futures in Paris rose on Tuesday from a four-week low a day earlier as the sale of French wheat in Egypt's latest tender confirmed the country's favourable export prospects.

December milling wheat, the most active position on the Paris-based Euronext exchange, was up 1.00 euro, or 0.5%, at 177.75 euros ($196.64) per tonne at 1640 GMT.

The December contract had slipped on Monday to its lowest since Oct. 10 at 176.50 euros as weakness in Chicago futures and a pause in a Russian price rally weighed on the market.

Export sentiment was boosted by competitive French prices in a tender held on Tuesday by Egypt's state buyer GASC, which bought 120,000 tonnes of French wheat along with 55,000 tonnes of Russian supplies.

"All the ingredients were there for a rebound," a futures dealer said.

"There was the GASC effect, strong chart support, a sharp fall in the euro against the dollar and Black Sea prices that are still high."

An easing in Russian wheat prices last week after a recent six-month high had contributed to Monday's fall on Euronext but prices in the world's top wheat exporter remained relatively high for the time of year.

The Egyptian tender supported physical prices in France, with premiums notably rising at Dunkirk, the port designated to load French wheat offered in the tender, brokers said.

In Germany, cash premiums in Hamburg were stable at recent firm levels, with sales offers again holding over Paris on hopes of more German export sales.

"Loadings of wheat and barley in German ports including Hamburg, Rostock and Lubeck are looking considerably busier than in past months," one German trader said. "Overall Black Sea exporters have lost their big price lead and it looks like the turn of west European exporters including Germany."

"Hamburg premiums have stabilised just above Paris prices after a long period of when they were quoted well below Paris. This is a sign of better export prospects."

Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale unchanged at 0.5 euro over Paris December. Buyers were seeking at least 0.5 euro under Paris.