PARIS: Euronext wheat rose on Monday, recovering from Friday’s three-month low, helped by technical support and hopes that competitive prices will bring fresh European exports and offset stalled French sales to Algeria.
Volumes were light with a holiday closure on U.S. markets removing usual impetus.
March wheat on Paris-based Euronext was up 2.50 euros, or 1%, at 266.00 euros ($303.37) a tonne by 1643 GMT.
On Friday the price slipped to 259.75 euros, its lowest since Oct. 6, before finding chart support to close at 263.50 euros.
Friday’s fall was fuelled by talk that Algeria’s state grains agency OAIC overlooked French supplies for a third consecutive tender as it purchased about 600,000 tonnes of milling wheat.
The loss of French market share in the country’s main overseas outlet added to concern over lagging European Union exports in the face of strong competition from South American and Australian supplies.
However, attractive French prices were continuing to draw interest from feed wheat importers in Asia while demand from Morocco was absorbing some milling supplies, French traders said.
In Germany, traders also saw prospects for new export sales.
“West EU wheat is looking competitive despite Algeria’s apparent decision to turn away from low-priced French wheat last week,” one German trader said.
“Wheat purchase tenders this week include Turkey and Jordan and I think the EU will have a good chance, although Argentine wheat is also looking cheap and shipping prices are low.”
Standard 12% protein wheat for delivery in January onwards in Hamburg was offered for sale at about 13 euros over Euronext March after trade was reported at 12.50 euros over on Friday.
Traders also cited continuing Chinese demand for new-crop French feed barley for shipment this summer.
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