EU wheat futures mixed, French market buoyed by export demand

PARIS: European wheat prices were mixed on Tuesday, with front months pressured by a dip in Chicago while concerns about the impact of cold weather on crops in eastern Europe and the Black Sea supported new crop contracts.

Benchmark March milling wheat on Paris-based Euronext unofficially closed down 0.50 euro or 0.2 percent at 207.00 euros a tonne.

New crop September was 0.1 percent higher at 191.25 euros a tonne.

The most-active wheat on the Chicago Board of Trade eased after gaining ground on Monday as investors weighed up a weaker dollar against falling oil and share prices ahead of a US Federal Reserve interest rate decision.

On the French cash market brokers noted increased premiums for wheat delivered in the ports of Rouen and La Pallice due to a rise in demand on the export market, possibly to cover sales to France's main market Algeria at the expense of Argentine wheat, which has become too expensive.

"French wheat becomes competitive again, notably in Algeria. The market is also awaiting to have a clearer picture on Morocco's customs duties from next year on," a trader said.

The north African country had said in October it would suspend its customs duty on soft wheat from Nov. 1 until Dec. 31 and then impose a 30 percent duty starting on Jan. 1, 2019.

Traders were also awaiting a meeting between Russia's agriculture ministry and grain exporters on Friday to discuss the grain market. The jury was still out on whether any decision could be made to curb exports.

Russia has been exporting at a heavy pace so far this season but shipments are expected to slow in the second half.

French grain stockers will finish at the end of the week for a two-week Christmas break.