Paris wheat eases after rally, Algerian tender results awaited
- Traders awaited the outcome of a tender Algeria held on Tuesday for milling wheat to be sourced from optional European origins.
- Front-month September futures shed 2 euros to 182.75 euros, easing back from a three-week peak of 185.00 euros touched a day earlier.
PARIS: Euronext wheat fell on Tuesday after rising to its highest since July a day earlier in a rally fuelled by strength in US corn and technical adjustments in spot Paris prices.
Traders awaited the outcome of a tender Algeria held on Tuesday for milling wheat to be sourced from optional European origins. Main producer France faces a poor French harvest.
December milling wheat, the most active contract on the Paris-based Euronext exchange, unofficially closed down 1.50 euros, or 0.8%, at 181.00 euros ($216.01) a tonne, after climbing on Monday to 182.50 euros, its highest since July 31.
Front-month September futures shed 2 euros to 182.75 euros, easing back from a three-week peak of 185.00 euros touched a day earlier.
The expiry on Monday of options against September futures had driven moves in the spot contract, dealers said.
A sharp pullback in Chicago wheat, after Monday's 3% surge that some traders said was speculative, pressured Paris prices.
Rising forecasts for Russia's harvest continued act as a brake on wheat prices, although steady Chinese demand for a much smaller French crop this year was helping underpin Euronext, traders said.
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