Paris wheat eases before US data, Russian market underpins

PARIS: Euronext wheat edged lower on Tuesday in step with Chicago prices as grain markets consolidated before widely followed US stocks estimates.

A sharp rise in the euro against the dollar also curbed trade on Euronext although tensions in the Russian market continued to underpin prices, traders said.

Benchmark December milling wheat on the Paris-based exchange settled down 1.0 euro or 0.5% at 192.25 euros ($225.72) a tonne.

The contract had fallen on Monday to an 11-day low of 191.00 euros. But it found chart support at that level to remain within sight of last week's five-month high of 195.75 euros.

Chicago most active wheat inched down.

Dry sowing conditions in Russia were keeping prices steady in the world's biggest wheat-exporting country, after a recent rally linked to brisk shipments, slow farmer selling and a weaker rouble.

"As long as Russian wheat is pricing at the same level as French there is no reason for Euronext to fall much," a futures dealer said.

In Germany, higher prices in Lithuania fuelled hopes more export business for Algeria could be transferred to German ports.

"Firming premiums are indicating that export supplies in the Baltic States could be getting tighter which would be good news for Germany," a German trader said.

Lithuanian 11% protein wheat for November shipment from Klaipeda was on Tuesday quoted at a premium of around 3 euros over the Paris December contract against level Euronext in mid-September.

"This would give a Lithuanian dollar fob price of just under $229 a tonne for Algerian specifications with Hamburg prices for Algerian quality a little less than $1 higher," the trader said.

A small harvest in France this year has led to French wheat being replaced increasingly in Algeria by Lithuanian, German and Polish supplies.

France is set to end September with no monthly shipments to Algeria, its main overseas market.