Euronext wheat was mixed on Tuesday, with support from a broad recovery in financial markets curbed by signs of renewed competition from Russian wheat and technical trading linked to the expiry of spot futures. Benchmark May milling wheat on Paris-based Euronext was down 0.25 euro, or 0.1%, at 178.25 euros ($201.40) a tonne at 1655 GMT.
It earlier rose to 179.75 euros as it moved away from Monday's five-month low of 177.25 euros. But it ran into chart resistance around 180 euros while also facing pressure from short-covering in spot March futures on their final trading day.
New-crop futures were slightly higher, with traders saying forecasts of more wet weather in northern France this week put attention back on difficult growing conditions for this year's harvest. A sharp rebound in share and oil prices, after a dramatic sell-off on Monday linked to fears over a fast-spreading coronavirus and an oil price war between Saudi Arabia and Russia, lent some support to grain markets, although shares later gave up gains.
Monthly supply and demand estimates from the US Department of Agriculture (USDA) were seen as in line with expectations, but with a 1 million increase to projected Russian wheat exports underscoring competition from the world's top wheat supplier. The revision came after several weeks of falling export prices in Russia, accentuated by weakness in the rouble.
"You have to ask if some demand has gone from western Europe to Russia," one dealer said. The market will get further pointers on export prospects on Wednesday when Algeria, the main overseas buyer of French wheat, holds an import tender.
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