PARIS: Euronext wheat reversed from a two-week low to end higher on Wednesday as traders assessed news that Algeria may be about to open its wheat import tenders to cheaper Black Sea origins. Benchmark December milling wheat on Paris-based Euronext unofficially closed up 1.50 euros, or 0.8%, at 188.25 euros ($222.85) a tonne.
It had earlier touched Tuesday's low of 186.50 euros, but recovered on chart support and a steadier trend in Chicago and Russian futures. Tender import purchases, including 235,000 tonnes of Russian and Polish wheat bought by Egypt, underpinned wheat markets.
Algeria has approved changes to its wheat import tenders to allow Black Sea origins, a French exporters group said, a long-anticipated move would bring France into competition with Russian wheat in its main overseas market. Market reaction, however, was muted after repeated speculation about a policy change.
"The market is really waiting to have confirmation of this," a French trader said. Farm office FranceAgriMer reduced its forecast for French soft wheat exports this season to 6.6 million tonnes, down 51% from 2019/20, due to a sharp drop in French harvest output. In Germany, which has picked up early-season sales for Algeria due to reduced French supply, traders were also assessing the news.
Comments
Comments are closed for this article.