EU wheat futures slightly firmer

Euronext wheat futures were slightly firmer on Tuesday, with a holiday closure in the United States leaving European prices to consolidate after hitting a one-year high on Monday on fears of weather damage to US spring wheat. Traders were assessing harvest prospects in France after a wet end to last week and awaiting results from a tender by Algeria, the largest overseas buyer of French wheat.
December milling wheat, the most active contract on the Paris-based Euronext exchange, unofficially closed up 0.25 euros or 0.1 percent at 185.75 euros ($210.71) a tonne. On Monday the contract had climbed to 188.00 euros, the highest level since June 2016. "Harvest work is going to resume for barley, durum and soft wheat after the wet weather last week," a French cash broker said. "People are watching closely to see what impact the rain has had on ripe crops and there are fears of germination damage."
French wheat was seen as well-placed in Algeria's tender given that German and Baltic Sea origins may be sold to higher-protein markets in the Middle East given the weather problems facing high-protein spring wheat in North America. However, the US market closure for the Independence Day holiday was seen as complicating pricing in the tender, traders said.
There was talk that sellers had offered around $218-220 a tonne C&F in the tender, while Algeria's state grains agency OAIC was seeking around $212, traders said. German cash premiums for high protein wheat in Hamburg remained supported by the sharp rise in US spring wheat futures. The highest quality E grade wheat with 14 percent protein content for September delivery in Hamburg was offered for sale at a premium of 21 euros over Paris December, up one euro.
This was way above new crop standard wheat with 12 percent protein content offered for sale unchanged at 2.5 euros under the Paris December contract for September delivery in Hamburg. "The latest harvest forecasts for Germany are good in terms of volume but crop quality will now be a key factor in Germany," a German trader said.