European wheat edged higher on Wednesday, mainly supported by a fall of the euro against the dollar, making it more competitive on world markets, and a rise in Chicago.
Front-month March milling wheat on Paris-based Euronext, settled at 190.50 euros ($226.54) a metric ton, up 0.5% on the previous day.
The most traded wheat contract on the Chicago Board of Trade was up 1% at $5.28-1/4.
European wheat reacted to comments by a grain analyst at farm office FranceAgriMer who said port lineups had shown a cargo of about 5,000 tons of wheat and 13,000 tons of barley heading to Algeria.
Traders said they were not aware of the wheat loading for Algeria and were surprised given diplomatic tensions between Paris and Algiers.
FranceAgriMer later said the information came from a third party's report.
"Prices jumped a bit initially on the (Algeria) news," a Euronext trader said, adding that the euro gave the market a boost.
On the supply and demand side, FranceAgriMer cut its forecast for French soft wheat exports outside the European Union in 2025/26 by 300,000 metric tons to 7.20 million as competition from Argentine wheat continued to weigh.
This was only partly compensated by a small rise in expected shipments within the bloc to 7.56 million tons from 7.51 million previously.
Traders noted continued strong demand for wheat from big importer Egypt.
Several Egyptian purchase inquiries for 12.5% protein wheat were seen for February shipment with prices for Black Sea origins sought at about $251-$253 a ton cost and freight included (c&f), one German trader said.
There was market talk of Egyptian purchases of both Russian and Romanian 12.5% protein wheat in past days at just over $250 a ton c&f.
"Egyptian purchase interest is visible for 11.5% protein wheat for February/March shipment with French and Russian wheat quoted about the same levels," he said.
Russian and French 11.5% protein wheat were both quoted around $249 a ton c&f Egypt for February shipment depending on euro and Euronext moves, he said. Ukrainian was slightly cheaper at about $248 with Romanian about $251.
Traders were also hoping that warmer weather in Germany would thaw frozen canals in coming days, after disruption to inland waterways grain shipping in past weeks.
Prices at 1740 GMT | |||
Last | Change | Pct Move | |
Paris wheat | 190.25 | 0.75 | 0.40 |
Paris maize | 189.75 | 0.75 | 0.40 |
Paris rapeseed | 486.75 | -1.00 | -0.21 |
CBOT wheat | 533.75 | 5.50 | 1.04 |
CBOT corn | 426.00 | -2.75 | -0.64 |
CBOT soy | 1123.00 | 0.50 | 0.04 |
Euro/dlr | 1.19 | 0.00 | -0.04 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne |
(Reuters)