PARIS: European wheat was trading sideways on Monday, split between concern for feed demand after China banned German pork due to an outbreak of swine fever in Germany and support from a hefty wheat purchase by Saudi Arabia.
Benchmark December milling wheat on Paris-based Euronext, was unchanged by 1430 GMT at 188.50 euros a tonne.
A small rise on US wheat markets was also supportive, traders said.
Saudi Arabia's state grain buyer SAGO said on Monday it bought 745,000 tonnes of wheat at its latest international purchasing tender for delivery periods between November and January, with sellers having the freedom to select origins to be supplied.
"The EU is expected to be the choice for the nearby delivery positions but Poland and the Baltic States such as Lithuania are looking cheaper than Germany so I think they will be the first choice," one German trader said.
"I certainly expect part of this Saudi purchase to be supplied from Poland."
Demand for French wheat was thin, with one trader pointing to France's traditional grain export hub Rouen where there was not a single cargo loading cereal on Monday and none expected in the coming days.
European traders were also eyeing import bans on German pork imposed by China and other countries after confirmation of a case of African swine fever (ASF) in a wild boar in Germany last week.
"At the moment the farm animals still have to be fed so it's too early to talk about a reduction in feed grain demand but there is a lot of uncertainty," another trader said.
German 12% protein new crop wheat for September onwards delivery in Hamburg was offered for sale little changed at around 1.5 euros under the Paris December contact. Buyers were seeking about 2.5 euros under Paris.
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