PARIS: Euronext wheat futures edged higher on Tuesday, with chart support helping prices to recover from the previous day's two-month low, while physical premiums in Europe held firm on healthy export demand. March milling wheat, the most active contract on the Paris-based Euronext exchange, was up 0.50 euros, or 0.3%, at 201.75 euros ($244.34) a tonne by 1634 GMT.
The contract had slid on Monday to 199.00 euros, its weakest since Oct. 9, before closing above the 200 euro threshold. Wheat markets have been pressured in the past week by improving global supply prospects, with Chicago wheat falling back towards a two-month low on Tuesday.
Euronext had also been curbed by a rally in the euro last week, hitting a two-year high against the dollar.
"Everyone is looking at a better Australian crop and a better Canadian crop, higher Russian export quotas and a strong euro," one futures dealer said.
"But we still have decent international tenders to support and uncertain crop development in Russia."
Attention was also turning towards Thursday's world crop report from the U.S Department of Agriculture (USDA) for further pointers on southern hemisphere harvests and Chinese demand.
In France, the farm ministry projected the country's soft wheat area would rebound by 12.4% from the previous rain-hit sowing campaign, though its estimate was below market expectations.
French physical premiums held recent gains as export loadings for China continued to erode this season's reduced surplus.
In Germany, standard bread wheat with 12% protein for December delivery in Hamburg was offered for sale unchanged at about 5 euros over Paris March. Buyers were offering about 3.50 euros over.
"This week we are again seeing a lot of supplies being called up to load ships and it looks like German ports will remain very busy up to the Christmas holidays," one German trader said.
"But Australia looks like being a new competitor in export markets in coming months, which could make new German export sales more difficult."
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