PARIS: Euronext wheat futures ticked higher on Monday, consolidating after a one-month low in the previous session, as traders assessed reports of rising global supplies.
December milling wheat on Paris-based Euronext rose 0.75 euro, or 0.3%, to 238.50 euros ($281.50) a tonne by 1519 GMT.
It earlier fell to 236.75 euros but held above Friday’s one-month low of 236.00 euros with help from a weaker euro.
The benchmark contract was also consolidating after Friday’s expiry of September futures. The September contract, which expired at 235.75 euros, led to physical delivery of around 40,000 tonnes, according to data from clearing house LCH.
Chicago wheat eased as Friday’s supply-and-demand report from the US Department of Agriculture hung over the market.
The USDA increased its production forecast for the bellwether US corn crop and expanded projected world wheat supplies.
“The market is waiting to see if the US can capture more export flows and stem the price pressure,” a futures dealer said.
US exports have been hampered by storm damage to grain terminals along the Gulf Coast.
In Europe, traders were weighing export demand after a rain-affected harvest led importers Algeria and Saudi Arabia to ease their requirements for test weights, a key milling criteria.
Saudi state buyer SAGO said on Monday it had booked 382,000 tonnes of wheat in a tender.
“I would expect most of the Saudi purchase will be sourced in Poland and the Black Sea region, especially Russia,” one German trader said, adding German supplies were not expected to claim much of the volume.
“German wheat can currently be sold at more expensive prices to a range of other importers including Algeria to replace French supplies after the quality problems with the French crop this summer.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 9 euros over Paris December.
Morocco, meanwhile, will suspend duties on soft wheat from Nov. 1, traders said on Monday.
That could provide an outlet for French wheat depending on the willingness of Moroccan millers to accept lower-than-normal test weights.