HAMBURG: Euronext European wheat futures rose to its highest in almost a week on Monday as a tender issued by Algeria was expected to bring fresh exports sales for French wheat.
Front-month March milling wheat on the Paris-based Euronext exchange was up 3.25 euros, or 1.4%, at 227.00 euros ($275.37) a tonne at 1649 GMT, its highest since Feb. 9.
US markets in Chicago were shut for the Presidents Day holiday. But cold US weather, including rare deep frosts in Texas, drew attention to the risk of crop damage to US winter wheat.
“The Algerian tender is clearly supporting Matif (Euronext),” one futures dealer said. “It looks like there’s going to be some winterkill in the U.S too.”
Algeria has issued an import tender closing on Tuesday. The tender specified shipment to two Algerian ports, which should favour smaller cargoes from France.
In Poland, prices were little changed, retaining recent high levels as brisk export shipments continued.
Exporter purchase offers for 12.5% wheat for March delivery was unchanged at around 995 zloty a tonne (221.7 euros) for March delivery.
“Volumes offered for sale by local traders and farmers is lower than a week ago,” one Polish trader said. “This could be a sign of lower stocks after large recent export shipments, but also farmers hope for higher prices with tighter supplies of milling wheat on the local market at the end of the season after large exports in past months.”
In Gdynia one vessel is loading 30,000 tonnes of Polish wheat for Morocco, he said.
Polish weather was very cold in the last week with nighttime temperatures as low as minus 20 degrees Celsius, but traders said snow cover is sufficient to protect winter grains.