PARIS: Euronext wheat futures fell on Tuesday as expected competition from Russian supplies in an Algerian tender encouraged Paris prices to move away from a 14-year high struck last week.
Benchmark March milling wheat on Paris-based Euronext was down 5.25 euros, or 1.8%, at 288.75 euros ($327.21) a tonne by 1707 GMT.
Algeria, traditionally the main export market for French wheat, relaxed a limit for insect damage in a latest tender, a move seen as allowing Black Sea origins like Russian wheat to be offered in larger quantities.
Algerian grains agency OAIC was thought to have started buying wheat in the optional-origin tender at around $382.50 to $384 a tonne, including cost and freight (c&f), with Russian supplies seen as being in contention, traders said.
French wheat was seen as standing little change of claiming any of the volume.
“Algeria is clearly putting pressure on French wheat and it’s now in a position to get Russian offers much more readily,” a French trader said.
However, concern about European Union wheat losing sales in Algeria was tempered by the risk of further Russian export restrictions in early 2022.
A fall in prices along with a weaker euro could also help European wheat pick up demand elsewhere.
“Although there is a general perception that the recent pace of EU wheat exports is unsustainable, we still have more to sell,”“ one German trader said.
“Russian wheat would still have a difficult time being selected for Algerian tenders because of the danger of continued Russian export tax rises during the lengthy shipment periods requested.”
Standard 12% protein wheat for November delivery in Hamburg was offered for sale at about 1 euro under Paris December futures against 2 euros under December on Monday.