European wheat bounces from near nine-month low

European wheat futures in Paris recovered on Tuesday from a near nine-month low, spurred by a sharp rebound in Chicago, fresh export tender demand and a lack of selling on the French cash market. Benchmark May milling wheat on the Paris-based Euronext exchange was up 3.25 euros, or 1.7 percent, at 184.50 euros ($208) a tonne at 1635 GMT.
The contract earlier equalled Monday's low of 181.00 euros, the lowest since June 19, 2018, continuing a recent downtrend amid bigger-than-expected wheat supplies on the global market from Russia, Ukraine and Romania in recent months. It later rebounded as Chicago wheat jumped more than 4 percent in a bounce after hitting a more than one-year low on Monday.
"The market is catching its breath after shedding 26 euros since Jan. 23 although this rebound doesn't change the trend of the past few weeks," a Euronext dealer said. A new milling wheat purchase tender announced by Tunisia closing on Wednesday, and coming after a tender launched by Algeria, also due to close on Wednesday, raised the prospect of fresh demand for French wheat, although traders said they would be monitoring price competition.
The market will also be watching monthly supply-and-demand estimates from France's FranceAgriMer on Wednesday to see if the farming agency increases its outlook for French wheat exports. A lack of sellers on the French physical market, reflecting disappointment with the recent price slide, also supported the firm trend on Tuesday, traders said.
In Germany, cash premiums in Hamburg slipped amid slack demand and farmers' unwillingness to sell at current low prices. Standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale down 1 euro at around 6.0 euros over Paris May.
"Demand is weak with a couple of ships loading wheat in Germany for South Africa this week but the outlook for new export sales by Germany (is) not looking promising," one German trader said. "French looks set to win most of the tender from Algeria this week."
"Turkey has a wheat tender for 290,000 tonnes closing on Friday. But this is divided into 29 separate tenders each of 10,000 tonnes which makes it hard to offer large volumes from Germany as a series of smaller shipments will be too expensive from Germany."