EU wheat falls to lowest in four sessions

PARIS: A fall on US wheat markets drove European prices to their lowest in four sessions on Wednesday, although a weaker euro provided some support.

December milling wheat on Paris-based Euronext, unofficially closed 1.00 euro or 0.6 percent lower at 160.75 euros ($186.3) a tonne.

In Chicago most-traded wheat was 0.8 percent lower at $4.23-3/4 per bushel, after hitting $4.19 in earlier trade.

The market had been awaiting the results of Egypt's tender to buy wheat for Dec. 15-30 shipment, which resulted in the purchase of 120,000 tonnes of Russian wheat.

While the result did not come as a surprise in light of the competitiveness of Russian wheat, traders noted that offers for Russian wheat had been aggressive, below $200/tonne FOB.

This could reflect higher confidence from exporters after Egypt issued inspection guidelines for wheat imports or a signal that Russian exporters are struggling for outlets, they said.

"Russian wheat remains offered massively. Sellers are fighting for demand," a trader said.

Attention will now focus on Algeria's tender to buy additional wheat for December shipment. Traders will look at prices paid but also watch to see if state grain buyer OAIC buys a limited amount to adjust its December needs or if it buys more.

Traders will also be looking at the US Department of Agriculture's (USDA) supply and demand report on Thursday which is expected to show higher corn yields, lower soybean yields and still-ample global supplies of grains and oilseeds.