Euronext wheat rose on Wednesday to equal a two-month high as a rally resumed in Chicago and traders anticipated logistical snags in France due to intense export demand, despite a small purchase by Algeria in a latest tender.
Benchmark May milling wheat on the Paris-based Euronext exchange settled up 3.00 euros, or 1.5%, at 197.75 euros ($214.84) a tonne. In late trade it matched Monday's two-month high of 198 euros, as Chicago spot futures also climbed to a two-month top.
An upturn in demand for bread and pasta as households stock up during the coronavirus pandemic has fuelled a rally in wheat futures in the past week, although some traders said the gains were speculative given ample global supplies and signs of panic buying easing.
Algerian state grains agency OAIC bought around 240,000 tonnes of wheat in an import tender on Tuesday, with French wheat seen as the most likely origin, traders said. The relatively small volume could reflect OAIC's reluctance to pay much higher prices than previously and wariness of suppliers to offer large amounts, the traders said.
"I don't think there were many offers in the tender given uncertainty over logistics in France," one trader said. "Export loadings in France are already at a record pace."
Reports of possible food export restrictions in some countries, including Russia, were also making the market nervous, traders added.
In Germany, cash premiums in Hamburg were stable, underpinned by continuing demand from exporters and flour mills.
Standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at around 6.5 euros over the Paris May contract. Buyers were offering around 5.0 euros over Paris.
In Poland, export wheat prices rose sharply in the last week, pushed up by Euronext and weakness in the zloty. Exporters increased purchase offers for 12.5% protein wheat by 100 zloty a tonne to 890 zloty (194 euros) a tonne for March/April delivery to ports.