HAMBURG: European wheat futures rose on Monday, supported by more weather-fuelled gains for US grain futures and news of a purchase tender by Algeria which could bring fresh export sales for European Union wheat.
September milling wheat on the Paris-based Euronext market was up 1.50 euros, or 0.7%, at 216.25 euros ($263.50) a tonne at 1608 GMT.
The contract earlier reached 219.75 euros, before paring gains in step with Chicago wheat.
A rally in US corn fanned by hot, dry weather forecast in parts of the US Midwest grain belt continued to underpin wheat.
“The US weather is having its effect on the market, even if corn pollination is still to come,” a French futures dealer said.
In contrast, a warm spell in Europe is expected to boost crop development after a chilly start to spring and following widespread rain in the past month.
In Germany, traders were cheered to see fresh demand, with a new milling wheat purchase tender from Algeria seeking August shipment closing on Tuesday.
Uncertainty about Russia’s grain export taxes could hinder offers in Algeria’s tender by Russian exporters.
“I think any purchase by Algeria could involve a mix of origins including France and Germany,” one German trader said.
“There is a long position in the German market for wheat meeting Algerian specifications which could be used for the tender, but Germany’s harvest is also expected to start later this summer, which could be a handicap.”
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