EU wheat stable as market awaits Algerian tender

PARIS: European wheat futures ended unchanged on Monday, underpinned by firm U.S. markets as traders awaited the results of a tender later this week by Algeria, the top buyer of French wheat.

Benchmark March milling wheat on Paris-based Euronext, settled at 202.50 euros ($229.61) a tonne, unchanged from Friday's close.

The most active wheat contract in Chicago was nearly 1 percent higher during U.S. trading.

Algeria's state grains agency OAIC has issued an international tender to buy milling wheat, with a bidding deadline on Tuesday, European traders said on Sunday.

"On paper Argentine wheat is best placed compared to French wheat. The question is to what point the quality risk will be a limiting factor," a trader said.

France is traditionally Algeria's main wheat supplier and the North African market is by far France's main export market this season.

The market was also watching tensions between Russia and Ukraine after Moscow stopped three Ukrainian ships from entering the Sea of Azov which is a grain export route, notably out of the port of Mariupol.

"For the moment traffic is restored but the situation can get worse and remains closely monitored," the trader said.

Prices were also supported by a large number of cargoes loading or scheduled in French ports.

These were mainly for traditional markets such as Algeria and West Africa but also included a rare panamax for China which could be followed by a second as trade tensions remain strong between China and both Australia and the United States, traders said.

The European Commission delayed the publication of its weekly grain and oilseed export and import data until later this week, without giving a specific reason.

In Germany, cash premiums in Hamburg were little changed, with the market taking an initially relaxed view of tension between Russia and Ukraine which potentially threatened grain shipments.

Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sales unchanged at 2.0 euros over Paris December.

Feed wheat in Germany's South Oldenburg market for November/December delivery was offered for sale above milling wheat, unchanged at around 215 euros a tonne, with buyers seeking 213 euros.

"Tension in the Black Sea region is worrying but I think the market doubts whether Russia would stop its own wheat export shipments reaching world markets so price reaction has been modest today," one German trader said.