PARIS: European wheat rose on Friday, supported by Algeria's large purchase which helped prices erase losses recorded at the start of the week.
December milling wheat on Paris-based Euronext was 0.9 percent higher by 1450 GMT at 162.00 euros a tonne, the same level as the close on Friday last week.
The contract had touched a contract low of 158.50 euros on Wednesday on renewed signs of hefty global supplies, notably in Russia.
Algeria's state grains agency OAIC bought about 590,000 tonnes of milling wheat in a tender which closed on Thursday at about $200 to $200.75 a tonne cost and freight included. Some put the highest price at around $201 c&f.
Traders had been wondering if OAIC would be willing to pay more than $200 a tonne.
"Algeria's purchase and the good price paid is really pulling the market today," a trader said.
Another said the market received support from the poor quality of the German harvest which could benefit demand for French wheat, although he said global competition would be tough.
Cash market premiums in Hamburg slipped on low demand, with concern about poor crop quality continuing as farmers struggled to complete the final stages of the rain-damaged German harvest.
Standard bread wheat with 12 percent protein content was offered for sale at 2.50 euros over the Paris December contract for September delivery in Hamburg against 3 euros over on Thursday.
"Some good progress was made with the German wheat harvest since Wednesday but rain is still expected in coming days and it looks like a lot of Germany's harvest in northern export regions will be rather poor quality," one German trader said.
"There is now general expectation that export supplies of German wheat will be smaller than last year and that France will take on a larger export role following its large, good quality crop."
Talk was of wheat from the Czech Republic, which had a good crop, being exported via Germany but current low prices were reducing Czech farmer selling.
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