PARIS/HAMBURG: European wheat rose on Thursday after hitting contract lows the previous day, supported by a rise in Chicago on concern about dryness in some US wheat production regions and strong international demand.
Benchmark May milling wheat on Paris-based Euronext, was up 1% by 1530 GMT to 211.25 euros a metric ton. “The big wheat purchase by Algeria on Wednesday is positive as it is a large volume taken out of Black Sea supplies at this stage of the season,” one German trader said.
Meanwhile, Tunisia bought 75,000 tons in a tender on Thursday. Algeria’s purchase of about 600,000 tons of wheat is expected to come largely from Ukraine, Romania and Bulgaria, with the political tension between France and Algeria thought to have hindered French supplies. No French trading houses were among unofficial lists of sellers compiled by traders.
However, Algeria’s purchases are optional origin and sellers may select another origin later. “With French prices this week about the same as Romanian and Bulgarian, some are wondering if an improvement in relations between France and Algeria could allow some French wheat to be supplied,” the German trader said.
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