EU wheat eases further on export doubts

PARIS, Feb 13 (Reuters) - Euronext wheat futures fell for a third day on Thursday as strength in the euro and results from an Algerian tender underscored a weak export outlook in Western Europe.

March wheat BL2H5 on Paris-based Euronext settled 0.4% down at 231.00 euros ($240.98) a metric ton.

The front-month contract earlier touched a one-week low at 230.50 euros, moving further back from Tuesday's one-month high of 238.75 euros.

After Euronext was buoyed recently by short-covering and signs of ebbing Russian competition, the focus has shifted back to sluggish exports, particularly from France, despite fresh demand from importers. GRA/TEND

“The market received substantial new demand this week with tenders from the big buyers Algeria and Saudi Arabia which is positive, but sadly it does not look likely that the west EU will get much of the business,” one German trader said.

“The Black Sea is still looking too cheap. Despite winter weather worries and export quotas, Russian prices are also showing only moderate strength while Romania and Bulgaria are also looking cheap.”

Black Sea origins including Ukrainian, Romanian and Bulgarian wheat were tipped to supply much of a purchase by Algeria on Wednesday.

The final volume bought was unclear but thought to be several hundred thousand tons, with prices at around $262-$263 a ton, cost and freight included, seen below Western European levels.

News that Saudi Arabia’s state purchasing agency is tendering for 595,000 tons of wheat lent early support to Euronext, but reaction was tempered by expectations that the country may also be supplied with Black Sea or Australian wheat.

France was seeing a pickup in loadings of feed wheat but mainly within the EU, with extra-EU grain shipments dominated by barley, LSEG data showed. GRAIN/SHP/FR

"French barley is finding markets amid issues for German barley and feed demand given high corn prices," a futures dealer said. "But when you see the prices reported from the Algerian tender, the room for French wheat exports outside the EU is still shrinking."

Consultancy Strategie Grains slightly increased its forecast for European Union soft wheat production in 2025/26, maintaining its expectation for a rebound from this season's rain-hit crop.

($1 = 0.9586 euros)