Euronext wheat retreated on Monday, depressed by a stronger euro as the market awaited further impetus from an Algerian import tender. March milling wheat, the most active contract on Paris-based Euronext, settled 1.75 euros, or 0.9 percent, lower at 205.25 euros ($235.36) a tonne. The contract had risen to its highest in over two weeks on Friday, at 207.25 euros, after tracking a rebound in US wheat.
Chicago wheat also eased on Monday. Volumes were light on Euronext, with many participants just returning after the Christmas and New Year break and not active in the market yet, while major export markets Russia and Ukraine were closed for the Orthodox Christmas holiday.
A tender issued by Algeria, to be held on Tuesday, could bring fresh sales for French wheat in its main export market.
French hopes have been boosted by uncertainty over the quality of rival Argentine crop. Speculation increased after news on Friday that a cargo of Argentina wheat sold to Algeria was rejected.
However, last week's rally and Monday's euro bounce tempered export sentiment.
"French wheat remains slightly dear compared with Black Sea origins in Morocco and versus US wheat in Algeria, which is curbing the upward momentum on the French market, particularly as Euronext nears a strong resistance zone of 207.50-210 euros," consultancy Agritel said in a note.
The euro rallied against a broadly weaker dollar, making grain from the euro zone more expensive in dollar-priced export markets.
In Germany, cash premiums in Hamburg were moderately firmer, following Friday's strength in Paris.
"The market is gradually getting back to full speed with a lot of players back at work today for the first time since Christmas," one trader said. "Prices are being assessed again."
Standard bread wheat with 12 percent protein for January delivery in Hamburg was offered for sale up 1 euro at 3.0 euros over Paris March.
Feed wheat in the South Oldenburg market for January onwards delivery was offered for sale above milling wheat at around 219 euros a tonne with buyers at around 216 euros.
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