PARIS: Euronext wheat fell on Thursday to ease back from a three-week high struck the previous day, as a retreat in US grain futures pressured Paris prices while traders awaited results from an import tender held by Algeria. December milling wheat on Euronext was down 1.50 euros, or 0.7%, at 209.75 euros ($247.61) a tonne at 1721 GMT.
The contract had risen on Wednesday to 213.25 euros, its highest since Oct. 21, before closing slightly lower. Chicago wheat, the global benchmark, shed over 1% while US corn and soybeans also fell sharply in a pullback following a rally sparked by Tuesday's US Department of Agriculture (USDA) supply and demand outlook, including reduced forecasts of US corn and soy supply.
A rise in the euro against the dollar also curbed Euronext. Traders awaited the outcome of the tender by Algeria, the largest overseas buyer of European Union wheat. Some traders said the Algerian state grains purchasing agency OAIC had been seeking to pay around $276 a tonne cost and freight included, against offers about $278, but others said prices were likely to be lower.
Traders had yet to report a purchase by OAIC. Consultancy Strategie Grains lowered its monthly forecast of EU and UK soft wheat exports this season by 700,000 tonnes to 24.3 million tonnes, but said projected supplies remained tight.
The Algerian tender was adding to a wave of export demand that has notably benefitted German wheat. Iran also bought wheat this week with Germany seen as one possible origin. Traders said a ship was loading about 65,000 tonnes of wheat for Iran in a German port following a previous purchase. Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at about 3 euros over Paris December, up from 2 euros over on Wednesday.
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