PARIS: European wheat prices were stable on Thursday as operators awaited the results of Algeria's tender in a market still pressured by prospects of ample global supplies.
December milling wheat on Paris-based Euronext, was unchanged by 1608 GMT at 160.50 euros a tonne.
Algeria, France's main client, is tendering to buy wheat for November shipment. There was no firm result yet but traders said the best offers were at around $202, cost and freight included, while state buyers OAIC was asking $198 C&F.
The purchase is optional and the range of origins could be large, including France and other traditional suppliers such as the Baltic States but also the United States, traders said.
"The question is whether or not they bought below $200 a tonne," one trader said.
The International Grains Council (IGC) on Thursday confirmed a good outlook for the world wheat crop in 2017/18 as it raised its forecast by 10 million tonnes, largely driven by better than expected harvests in the Black Sea region.
In Germany, the focus remained on progress with the final stages of the harvest after repeated rain delayed work and damaged the crop.
Standard bread wheat with 12 percent protein content was offered for sale unchanged at 3 euros over the Paris December contract for September delivery in Hamburg.
"Some good harvest progress in the final areas was made in sunnier weather on Wednesday," one German trader said. "But more showers may have yet again interrupted harvesting on Thursday, so there is still no end in sight to the gloom about the German crop."
In Poland, late summer rain is also causing concern about loss of new crop quality and reduced export supplies, but weakness in benchmark Paris futures depressed prices.
"In south and central Poland the quality is good and the yields were excellent, but the more to the north you go, the more problems are suspected with quality and quantity of the wheat after rain," one Polish trader said. "In the northwest close to the German border and other northern areas between 40 to 60 percent of the grain is still on the fields."
Exporter purchasing prices for 12.5 percent protein wheat dropped by 20-25 zloty on the week to 660 zloty a tonne (154.7 euros) for August/September delivery to ports.
"Exporters seem to have cancelled previous plans to load Polish 12.5 percent protein wheat to Saudi Arabia and another destinations due to delays in the harvest, the small supply, concerns about quality and initial high new crop price demands," the trader said. "They have moved shipments to the Baltic States and/or to the Black Sea."
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