PARIS: European wheat futures steadied on Tuesday after an earlier one-week low as traders awaited widely followed US government crop forecasts.
March milling wheat, the most active contract on Paris-based Euronext, was up 0.75 euros, or 0.3%, at 279.75 euros ($323.22) a tonne by 1636 GMT.
It earlier slipped to a one-week low of 278.00 euros.
The contract has been easing back from last Tuesday’s peak of 289.50 euros, the highest for a second-month position since March 2008.
That peak was driven by brisk export demand and signs of tightening European supplies, although profit-taking and favourable prospects for Southern Hemisphere harvests have curbed prices since last week.
Grain markets were looking ahead to the US Department of Agriculture’s (USDA) November world crop report on Tuesday for fresh direction.
European traders were also watching to see if key customer Algeria would issue a tender for December shipment.
In Germany, traders said export demand was being reduced by the continued high level of Paris prices.
“Demand dropped sharply after the 13-year highs touched by Euronext early last week and has still not yet recovered,” one German trader said.
“Paris prices have pulled back from their peak but not enough to stimulate new export demand.”
The number of ships loading wheat in Germany in November is much smaller than earlier in the autumn.
Standard 12% protein wheat for November delivery in Hamburg was offered for sale at about 2 euros under Paris December , with few buyers visible.
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