European wheat prices rose on Wednesday in a technical bounce from a one-month low, as traders awaited the results of tenders being held by Egypt and Algeria plus the US Federal Reserve's much anticipated interest rate decision. May milling wheat on the Paris-based Euronext exchange unofficially closed up 1.75 euros, or 1.0 percent, at 172.50 euros a tonne, rebounding from Tuesday's low of 170.50.
However, the benchmark contract lacked impetus in light volumes to break the next resistance at 172.50, traders said.
"We're hovering really in between chart support and resistance levels," one futures dealer said.
The prospect of a US interest rate rise announcement later on Wednesday, and more rises this year, was supporting Euronext as this could lead to an export-boosting weakening of the euro, traders said.
French wheat was seen as well placed to be chosen as an origin in an Algeria purchase tender.
France has an outside chance of a sale in an Egyptian tender if Egypt decided to look beyond cheaper Black Sea origins in order to secure a large volume, traders said.
Results were awaited in both tenders.
German cash market premiums in Hamburg fell with the outlook for large supplies intensifying as the mild winter helps crops.
Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at a premium of 3 euros over the Paris May contract against 3.5 euros over on Tuesday. Buyers were seeking 2.5 euros over.
Germany's 2017 wheat crop is expected to increase 2.2 percent on the year to 25.13 million tonnes, the country's association of farm co-operatives forecast on Wednesday.
German grains and rapeseed crops are in overall good condition following a mild winter with no major frost damage so far, the association said in its first harvest forecast.
"It looks like Germany could be heading towards a large harvest with large supplies this summer if there are no major late winter frosts and with normal weather patterns in the next few months," one German trader said.
The weak trend in Hamburg this week was despite the new wheat tender from Algeria, a major German customer said.
"France is tipped to win a good slice of the Algerian tender this time but not all of it," another trader said. "I think north European suppliers including Germany, Sweden and Poland could also get a decent share."