Western European wheat prices were little changed on Wednesday as Paris futures consolidated above recent contract lows and traders looked ahead to an Algerian tender for further clues on export demand. Front-month May milling wheat on the Paris-based Euronext exchange settled unchanged on the day at 164.00 euros a tonne.
The spot futures hit a contract low of 162.75 euros on Friday before finding support when US corn and wheat rallied following US government planting forecasts. "The market has mostly done the job in pushing prices lower to keep EU wheat competitive for export," a French broker said. "With French wheat expected to claim a share of Algeria's import tender tomorrow, cash premiums have firmed up a little."
Algeria, one of the world's largest grain importers, will hold an import tender on Thursday. France is usually its main supplier but a poor French harvest last year has led Algeria to take more wheat from other origins. Chicago futures provided little impetus on Wednesday, with US wheat trading slightly higher. In Germany, cash market premiums in Hamburg were little changed as the market there also lacked impetus.
"There is continued activity loading ships in German ports but this is old business and not exciting the market," said one German trader. Standard wheat with 12 percent protein content for April delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris May contract. Buyers were seeking 4 euros over.
In other export news, Turkish flour mills have covered short-term needs by purchasing several hundred thousand tonnes of wheat from European Union and Black Sea countries, replacing Russian supplies blocked by a change to import rules, millers and traders said. Rapeseed futures saw sharper moves as they were boosted by a rebound in US soybeans from a six-month low, as well as by strong gains for Malaysian palm oil. Spot rapeseed on Euronext settled 4.75 euros or 1.2 percent higher at 402.75 euros a tonne, after climbing back above the psychological 400 euro threshold.
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