European wheat futures slightly firmer

European wheat futures in Paris were slightly firmer in thin volumes on Tuesday, with export-boosting weakness in the euro helping offset a drop in US prices while traders awaited the outcome of a purchase tender by major importer Algeria.
Benchmark May milling wheat on the Paris-based Euronext exchange was up 0.50 euro, or 0.2 percent, at 187.50 euros ($209.7) a tonne at 1540 GMT. Paris prices were holding above Monday's low of 184.75 euros, the weakest in more than two weeks, but lacked impetus to rebound further, traders said. The euro fell to its lowest in over three weeks against the dollar, lending support to Euronext in the face of a drop in Chicago wheat.
The euro's weakness could help prospects for French wheat in the international purchase tender being held by Algeria on Tuesday, for which some traders had seen Argentine wheat as in contention after a slide in the peso.
Traders reported lowest offers in the tender at around $235-$236 a tonne, cost and freight included, with Algerian state buyer OAIC seeking to pay around $232.
French dealers were also assessing rain that returned to much of France on Tuesday after a dry spell that had exacerbated underlying drought in parts of the country.
In Germany, cash premiums in Hamburg were little changed.
"There is a good export programme with ships loading in German ports which in underpinning premiums," one German trader said.
"Farmers are also unwilling sellers following the sharp fall in Paris futures since the beginning of this year."
Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale unchanged at around 8 euros over Paris May.
Feed wheat remained above milling wheat, continuing a pattern seen in past months. Feed wheat prices have been high since last summer's drought and heatwave damaged Germany's harvest of fodder crops.
Feed wheat in the South Oldenburg market for April/June delivery was offered for sale at around 200.50 euros a tonne, with buyers seeking 199 euros.
"Weather continues to be unusually mild and hopes are increasing that German wheat will come through the winter without significant frost damage," another trader said.
"The frost danger is not over yet but the likelihood of a serious frost is getting smaller every day." "Optimism is rising that Germany will have a better wheat harvest this summer after last year's terrible crop."