LONDON: European wheat futures climbed to a two-week high on Friday, boosted by gains in Chicago and an improving export outlook as the euro lost further ground against the dollar.
CBOT wheat futures were supported by short-covering as traders squared positions ahead of a tour through Kansas next week that will allow crop scouts to get a first-hand look at damage caused by a drought.
May milling wheat on Paris-based Euronext was up 1 euro, or 0.6 percent, at 167 euros a tonne by 1521 GMT after peaking at 167.25 euros, the highest level since April 11.
New-crop December rose 0.3 percent to 173.50 euros.
The euro fell on Friday to its lowest against the dollar since Jan. 12.
Dry weather conditions in the Black Sea region, a major competitor of Western European wheat exporters, was closely eyed with little to no rain forecast in the Ukrainian and Russian regions neighbouring the Black Sea in the coming two weeks, which could hurt final yields. http://www.wxmaps.org/pix/prec4
Algeria's state grain agency OAIC bought 420,000 tonnes of milling wheat in its latest tender, traders said. The origin of wheat was likely to be French and shipment was for July, the opening month of the 2018/19 harvest season in Europe.
"Export prospects in other EU countries look brighter than in Germany, though competition from the Black Sea remains very strong," one German trader said.
"Algeria made a decent purchase in its tender today, but I doubt Germany will be the first choice, with France and other exporters in the Baltic looking better positioned."
Strikes in France continued to disturb grain traffic. Interland transport was hit by protests on alternate days against a planned government reform of national rail company SNCF.
In the port of Rouen, cargoes have been lining up as a dockers' protest slowed loading. The situation worsened on Friday when work was halted by a one-day strike.
"The logistical situation which was already difficult, is becoming extremely tense," one senior trader said, adding that the situation may not improve in May, which brings several public holidays.
French port data showed a cargo was waiting in France to load about 60,000 tonnes of feed barley for Iran, which would be the first such export since January 2015. Part of the grain is due to be loaded in Rouen and the remainder in Dunkirk.
In France, latest data shows that the crops are developing well, with 77 percent of the harvest in good to excellent condition. That compared with 78 percent estimated last week. In Germany, standard bread wheat with 12 percent protein content for May delivery in Hamburg was offered for sale unchanged at 4.50 euros over Paris May.
Feed wheat prices in Germany's South Oldenburg market were again over milling wheat, with delivery for May onwards offered for sale unchanged at 178 euros a tonne with buyers seeking 177 euros.
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