Euronext wheat futures inched down on Wednesday, consolidating near a three-week high struck in the previous session, as traders awaited results from an import tender being held by Algeria. Euronext remained underpinned by export demand, which was also supporting physical market prices in Europe along with slow selling by farmers, traders said.
Benchmark December milling wheat on the Paris-based Euronext exchange was down 0.50 euro at 179.75 euros ($198.95) a tonne by 1541 GMT. The contract had climbed on Tuesday to its highest since Oct. 29 at 180.50 euros.
Paris futures failed to get impetus from Chicago, where wheat prices also consolidated after rising on Tuesday. "As usual, news of tenders by Algeria and others contributed to price gains as seen yesterday," a futures dealer said.
"It's now about waiting on the Algeria results."
Algeria, the biggest overseas market for French wheat, was holding a tender on Wednesday to buy optional-origin milling wheat for shipment in January, except for South American origins, for which shipment was sought in December.
Most of any wheat bought by Algeria in the current tender is expected to come from France, with new-crop Argentine wheat seen as not yet competitive. A drier start to the week was expected to help French farmers make some headway in rain-delayed winter cereal sowing and maize harvesting, traders said.
In Germany, standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at 4.0 euros over Paris December against 4.5 euros over on Tuesday. Buyers were offering up to 3.0 euros over Paris. Hamburg prices remained well above Paris futures on recent export sales and hopes for more export business.
In Poland, prices rose again in the past week, due to strong export demand and slow selling by farmers. "Exporters are still very active, offering high prices in comparison to domestic markets," one Polish trader said. "I estimate that in December and January, around 400,000 tonnes of wheat has been booked for export out of Poland to third countries."
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