Paris wheat futures rose on Thursday as a large sale of French wheat to Egypt in an international tender underscored strong export activity and took attention away from flagging domestic demand during the coronavirus epidemic.
May milling wheat on the Paris-based Euronext exchange was up 1.75 euros, or 0.9%, at 196.50 euros ($212.95) a tonne at 1614 GMT, regaining some ground after falling in the previous two sessions.
It earlier gained as much as 3.25 euros after Egypt's state grain buyer GASC said it bought 240,000 tonnes of wheat in an international tender, including 180,000 tonnes of French supplies.
The sizeable purchase boosted export sentiment after disappointment over a smaller purchase of Russian wheat by GASC in a previous tender on Tuesday.
"The last GASC tender weighed on the market but today French wheat is back in the race," a futures dealer said.
"The market is weighing up weakness in the domestic market against this export demand with importing countries stockbuilding," he said.
But Romania suddenly removed its wheat export ban on Thursday.
Consultancy Strategie Grains increased its forecast of European Union soft wheat stocks this season as reduced domestic demand for cereals during the coronavirus crisis outweighed an improved wheat export outlook.
Like other analysts, Strategie Grains said the loss of restaurants and other out-of-home eating outlets during anti-coronavirus lockdowns and a drop in demand for crop-based biofuels were eroding cereal use.
In Germany, cash premiums in Hamburg remained underpinned by good export demand as Black Sea sales could be restrained by export restrictions.
Standard bread wheat with 12% protein for May delivery in Hamburg was offered for sale little changed at around 6 euros over the Paris May contract. Buyers were offering around 5 euros over Paris.
"Black Sea supplies are getting tighter and more expensive with more demand set to be moved to west Europe, which the result of the Egyptian tender showed today," one German trader said.
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