Euronext wheat futures were higher on Wednesday, supported by an Egyptian tender that shifted the market's focus back towards export demand. Benchmark December milling wheat on Paris-based Euronext settled 1.75 euros, or 1.0%, higher at 180.00 euros ($199.46) a tonne. That brought the contract back near to Monday's 2-1/2 month high of 181.25 euros after a retreat on Tuesday.
A tender from Egypt, the world's top wheat importer, showed French wheat remained competitive against rising prices for Black Sea origins. Egyptian state buyer GASC announced after the Euronext close that it had purchased 405,000 tonnes of wheat. That included one cargo of French wheat as anticipated by traders on the basis of offers reported earlier in the day.
"The GASC tender is a positive sign even if there is still a long way to go for French exports," a futures dealer said. Chicago wheat was firm, with traders noting technical buying. Dealers said technical factors also supported Euronext as it found support following Tuesday's pullback. Some European market participants were travelling to an annual grain gathering taking place on Thursday and Friday in Vienna, which was expected to reduce market activity for the rest of the week. Weekly Euronext data showed that financial investors reduced further their net short position in the exchange's wheat futures and options in the week to October 11.
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