European wheat slipped on Monday as a firmer euro and chart resistance pushed futures back from a one-week high while traders awaited news on rain delays to planting in France and an import tender called by Algeria.
December wheat on Paris-based Euronext ended down 0.5% at 232.25 euros ($249.30) a metric ton, moving away from Friday’s one-week peak of 234.50 euros.
Repeated showers in France in the past two weeks have left wheat sowing behind the average pace of recent years, raising early concerns about next year’s harvest.
“The rain is a major topic for the French market and Euronext, with the question of whether production potential is being affected,” a futures dealer said.
“Today’s price trend is partly technical and also to do with the euro which is holding firm.”
Traders were also looking ahead to Tuesday’s Algerian tender to gauge the competitiveness of western European wheat, including French supplies, against Black Sea origins.
German traders said the Algerian announcement followed an especially quiet period for the tender market. Jordan is this week also seeking up to 120,000 tons in the country’s first tender since August.
“Currently Russian wheat is looking so cheap that it will be a tough call for the EU to make major sales to Algeria,” one German trader said.
Algeria is a vital customer for wheat from the European Union, especially France, but Russian exporters have been expanding strongly in the Algerian market.
“The main nearby hope for more EU sales is Morocco which has just bought some shipments from Germany and Poland,” the trader said. “There is also hope of more EU sales to China.”
Standard 12% protein wheat for November delivery in Hamburg was offered for sale at a premium of about 3 euros over the Euronext December contract.
Source : Market Screener