PARIS: Euronext wheat rose for a third session on Wednesday, supported by expectations EU origins will gain fresh export sales in a latest tender by Algeria.
Gains were capped as Chicago wheat turned lower in volatile US trading after a day-earlier rally fuelled by a big sale of US corn to China.
March milling wheat on Paris-based Euronext settled up 1.25 euros, or 0.5%, at 231.00 euros ($279.79) a tonne.
After a sell-off last Friday, grain markets have rebounded this week but on Wednesday faced chart resistance ahead of multi-year highs struck earlier this month, traders said.
Algeria, the largest export market for European Union wheat, made a purchase in an import tender held on Wednesday, according to traders.
Initial estimates of the volume ranged between 500,000 tonnes and 660,000 tonnes, with prices paid seen at around $312 to $314 a tonne, including cost and freight (c&f). More detailed assessments are expected later.
The tender could bring fresh export sales for France and Germany, which are already seeing a busy export programme this month for Algeria.
In Germany, standard milling wheat with 12% protein for February delivery in Hamburg was offered for sale at around 5 euros over Paris March, against 6 euros over on Tuesday, as buyers resisted price rises in Paris.
“Overall premiums remain supported by hopes part of any purchase by Algeria in its tender today will be sourced in the EU,” one German trader said.
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