Euronext wheat futures edged higher on Thursday as a rare setback for Russia in an Egyptian wheat tender supported expectations that export demand will shift westwards in the second half of the season. Benchmark March milling wheat on Paris-based Euronext, settled 0.75 euro, or 0.4 percent, higher at 206.00 euros a tonne, steadying after a one-week low of 205.25 euros on Wednesday.
A slight rise in Chicago wheat also lent support, although a stronger euro capped gains on Euronext, traders said. Egypt on Thursday bought no Russian wheat in an import tender for the first time in six months, another sign of rising prices in Russia after a blistering start to its export season.
Egypt's General Authority for Supply Commodities (GASC) bought 60,000 tonnes of Ukrainian wheat and 60,000 tonnes of Romanian wheat in a relatively small purchase that showed the highest prices it had paid in almost four years. The tender result reinforced the view that Russian supplies are waning, which could trigger more demand for French and US wheat in the latter part of the July-June export season.
"It feels like the centre of export gravity is slowly but surely moving west," a futures dealer said The Egyptian tender results also heightened interest in a meeting on Friday between Russian government officials and grain exporters, amid recurring speculation the country could apply some form of export restrictions to cool domestic prices.