Euronext wheat futures recovered on Thursday from a two-week low, supported by a rebound in Chicago and signs of healthy export demand. March milling wheat, the most active contract on the Paris-based Euronext exchange, was up 1.50 euro, or 0.8%, at 183.50 euros ($202.25) a tonne by 1625 GMT.
It earlier eased to 181.75 euros, equalling a two-week low reached on Wednesday, but again held chart support at that level. Chicago wheat, the global benchmark, bounced off a near three-week low earlier in the day, spurred by higher than expected weekly US export sales.
An import tender called by Tunisia for Friday, following a large tender purchase by Egypt this week, underscored steady international demand. In a monthly report, French consultancy Strategie Grains kept its forecast of European Union soft wheat exports in 2019/20 at just under 29 million tonnes, up sharply from 20.8 million tonnes last season.
Expected demand from Iran, which could benefit German wheat, was seen offsetting any easing in Algerian purchases after the North African country's recent decision to cut wheat imports, Strategie Grains said. The firm's analysts also forecast a fall in EU soft wheat production next year, to 140.5 million tonnes from 145.8 million in 2019, after rain delays to sowing this autumn.
French physical premiums for nearby delivery held firm amid signs of continuing export demand, brokers said.
Farming agency FranceAgriMer on Wednesday increased its forecast for French soft wheat exports outside the EU this season for the third month in a row, to 12.2 million tonnes. However, traders were also monitoring an ongoing rail strike amid protests against pension reform, which could disrupt export loadings if it lasted into late December.
In Germany, cash premiums in Hamburg remained underpinned by the strong programme of ship loadings for export. Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 3 euros over the Paris March contract.