PARIS: Euronext wheat rose on Tuesday to near a six-week high, supported by a rally in US futures that was fuelled in turn by market chatter of Chinese demand.
A latest in Russian wheat futures also underpinned Euronext, although a firm euro and chart resistance again capped Paris prices.
December milling wheat, the most active contract on the Paris-based Euronext exchange, settled up 2.00 euros, or 1.1%, at 187.50 euros ($223.95) a tonne, close to Monday's six-week peak of 188 euros.
Traders said talk of Chinese purchases of US wheat triggered speculative buying, even as a recent weather-fuelled rally in US corn stalled.
"There are rumours of China buying US hard red winter wheat," a futures dealer said.
"Wheat is quite a fickle market at the moment, with the funds pushing it around a bit."
In Poland, prices rose in the past week following stronger international markets and brisk export demand, especially for shipments to Algeria.
Export prices for 12.5% protein milling wheat rose about 15 zloty on the week to around 765 zloty (174.0 euros) a tonne for September delivery to port silos.
"Exporters are aggressively buying Polish wheat with Algerian specifications," one Polish trader said. "It is suspected that a lot of Polish milling wheat will go to Algeria this season to replace French wheat."
France's soft wheat exports are expected to fall steeply this season in line with a much smaller harvest.
But Poland is facing stiff competition from the Baltic States.
Polish wheat meeting quality Algerian specifications is quoted at about 4 euros below the Euronext December contact free on board (FOB) at Polish ports, while Baltic States wheat with the same quality is at about 6.5 euros under Euronext, traders said.
A ship with 31,500 tonnes of Polish wheat recently sailed from Gdynia for Algiers.
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