PARIS: Euronext wheat ended flat on Wednesday, consolidating near contract highs as traders monitored dry weather in several exporting countries and awaited the outcome of an Algerian tender expected to yield fresh sales of European Union wheat.
December milling wheat, the most active contract on Paris-based Euronext, settled unchanged on the day at 211.25 euros ($250.82) a tonne.
On Tuesday it rose to 214 euros, a life-of-contract record and the highest spot price since August 2018, before closing slightly lower.
Chicago wheat turned slightly lower during US trading as it also consolidated after a six-year high on Tuesday.
A fresh one-month high for the euro against the dollar also encouraged Euronext to consolidate.
Despite large global inventories, dry conditions affecting planting in the United States and Russia and the harvest in Argentina have roiled the wheat market, along with soaring Russian prices and steady international demand.
Algerian grain agency OAIC was holding a purchase tender on Wednesday, its second in as many weeks, and traders said EU countries, notably in the Baltic region, were seen as well placed to clinch sales.
Traders said OAIC was not thought to have made any purchases yet. The agency was thought to be looking to pay in a $273-$277 per tonne range, including cost and freight (c&f), with suppliers offering around $278-$280.
In last week's tender OAIC booked 600,000 tonnes of wheat at around $263.50-$264 per tonne, according to traders.
"Russian wheat is still looking too expensive to have a realistic chance in the latest Algerian tender," one German trader said.
"With French export supplies tight, I think there is hope Germany and Poland could be used to supply at least part of any purchase by Algeria this week."
Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale little changed at 2 euros under Paris December.-Reuters
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