European wheat futures in Paris slipped to a fresh four-month low on Wednesday as concerns about tighter import rules in Egypt reinforced bearish export sentiment, but recovered later as US wheat prices rose in early trade. March milling wheat on the Paris-based Euronext exchange was up 0.25 euros or 0.1 percent at 171.00 euros a tonne by 1657 GMT, recovering from an earlier low on Wednesday of 169.50 euros.
Wednesday's fall took the benchmark March contract below a previous four-month low of 170.50 euros touched earlier this week. Dealers said a close below the chart support level of 170 euros could add pressure and open the way to test a contract low of 167.75 euros. Wheat shipments to Egypt including from major exporter France have been disrupted partly by uncertainty about new quality requirements. Egypt's agricultural quarantine authority told Reuters it required a zero presence of grain fungus ergot in imported wheat, and that state buying agency GASC would have to tighten its tender terms accordingly. The policy move is being opposed by traders, who say it is virtually impossible to supply wheat with no traces of ergot. This has dented export hopes in France which has already seen shipments delayed to Egypt because of problems in securing letters of credit.
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