EU wheat rises from lows in wake of Chicago, strong demand supports

PARIS/HAMBURG, April 17 - European wheat rose on Thursday after hitting contract lows the previous day, supported by a rise in Chicago on concern about dryness in some U.S. wheat production regions and strong international demand.

Benchmark May milling wheat BL2K5 on Paris-based Euronext, was up 1% by 1530 GMT to 211.25 euros a metric ton.

“The big wheat purchase by Algeria on Wednesday is positive as it is a large volume taken out of Black Sea supplies at this stage of the season,” one German trader said.

Meanwhile, Tunisia bought 75,000 tons in a tender on Thursday.

Algeria’s purchase of about 600,000 tons of wheat is expected to come largely from Ukraine, Romania and Bulgaria, with the political tension between France and Algeria thought to have hindered French supplies. No French trading houses were among unofficial lists of sellers compiled by traders.

However, Algeria’s purchases are optional origin and sellers may select another origin later.

“With French prices this week about the same as Romanian and Bulgarian, some are wondering if an improvement in relations between France and Algeria could allow some French wheat to be supplied,” the German trader said. “The Algerian shipment period is June and a lot can still happen in the meantime.”

The International Grains Council (IGC) trimmed its forecast for the 2025/26 world wheat crop by 1 million tons to 806 million, mostly thanks to declines in the United States.

Russian agriculture consultancy Sovecon raised its forecast for the country's 2025 wheat production to 79.7 million metric tons, up 1.1 million metric tons from the previous estimate.

Welcome rain is forecast for some dry regions in France and Germany next week, good for crops after dry weather in March and early April.

Euronext and the Chicago Board of Trade will be closed on Friday for Good Friday.