PARIS: Paris wheat was mixed on Monday as revised Algerian import tender terms threatened more competition for western European grain, although brisk international demand and the prospect of Russian export curbs kept prices near 14-year highs.
Benchmark March milling wheat on Paris-based Euronext settled unchanged on the day at 294.00 euros ($334.72) a tonne.
It earlier fell as the market reacted to weekend news that Algeria had launched a tender with a relaxed limit for insect damage, seen as allowing Black Sea origins like Russian wheat to be offered in larger quantities.
“The Algerian tender announcement really weighed on the market earlier in the session,” a futures trader said.
However, concern about European Union wheat losing sales in its main overseas market was tempered by reports towards the end of the session that Algerian grain agency OAIC had postponed tender negotiations until Tuesday.
The risk of further Russian export restrictions in early 2022, as suggested by the country’s agriculture minister last week, was partly thought to have limited offers for January in OAIC’s tender, with interest concentrated in a first shipment period of late December.
December wheat on Euronext stayed in negative territory, settling down 0.8% at 294.755 euros as it was curbed by the prospect of near-term Russian shipments as well as technical adjustments at the expiry of options on December futures.
Traders continued to see steady international demand, also shown by Friday’s announcement by Iraq that it planned to hold a tender to import 500,000 tonnes of wheat.
“What this actually means is a little vague as no tender has been issued,” a German trader said. “But it would bring Iraq back into the import market after being generally absent this year.”
Standard 12% protein wheat for November delivery in Hamburg was offered for sale unchanged at about 2 euros under Paris December futures, with buyers seeking around 3 euros under December.
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