PARIS: Euronext wheat edged lower on Thursday as traders assessed a potential share for European supplies in an Algerian import purchase while reacting to fluctuating prices in Chicago.
March milling wheat on Paris-based Euronext settled down 1.25 euros, or 0.5%, at 229.75 euros ($278.48) a tonne.
The fall broke a three-day rally that had seen Euronext’s spot contract recoup heavy losses from last Friday.
Paris prices were pressured on Thursday by lower US wheat futures and a weaker corn rally after reaching 7-1/2 year highs.
Traders said resistance levels after multi-year highs across grains and worries about volatility in equity markets were countering support from Chinese demand and tightening grain supply. “US corn exports to China are supportive overall to grains,” a futures dealer said.
“But there is talk about financial bubbles. So it’s hard to see what we’re following - fundamentals or external influences?”
The US Department of Agriculture reported a sale of over 1 million tonnes of corn to China for the second time this week.
Coupled with concerns over South American crop weather, Chinese demand has sustained grain rallies in recent weeks.
European traders were also analysing the latest purchase by Algeria, the biggest overseas buyer of European Union wheat.
Reaction was mixed as the optional-origin purchase, estimated at between 630,000 and 660,000 tonnes, was expected to be partly supplied from Argentina.
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