Euronext wheat futures were lower on Monday, dragged down by weakness in Chicago although a tender issued by major importer Algeria helped to limit losses. December milling wheat on the Paris-based Euronext exchange ended 1.25 euros, or 0.7 percent, lower at 171.75 euros a tonne. "I think Paris wheat is being partly undermined today by the weakness in Chicago today while the euro remains at levels which will still punish exports," one European trader said.
The euro briefly touched a six-month high against the dollar following Emmanuel Macron's widely expected victory in France's presidential election before losing ground as investors took profits. "The main hope is new demand from importers along with a weaker euro as the uncertainty following the French presidential election falls off. The Algerian wheat tender issued today is positive news as the EU could be likely to win much of the business," the trader added.
Algeria's state grains agency OAIC has issued an international tender to buy optional-origin soft milling wheat and animal feed barley, European traders said on Monday. The tender sought a nominal 50,000 tonnes of both grains but Algeria often buys considerably more in its tenders than the nominal volume sought. Feed wheat futures in London were mostly lower with November down 0.4 percent at 140.00 pounds a tonne.
In Germany, cash market selling premiums in Hamburg were slightly weaker in line with early day falls in Paris old crop futures, but overall again supported by strong feed wheat demand. Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale down 1 euro at 6 euros over the Paris May contract, buyers were seeking 4 euros over.
"The internal German market continues to support prices, with demand from feed compound makers again keeping feed wheat prices above milling wheat in parts of Germany," one trader said. Feed wheat for May delivery in Germany's South Oldenburg feed wheat market was quoted about 6 euros over Hamburg milling wheat for much of Monday at around 180 euros a tonne.
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