EU wheat steadies after lows as import demand stirs

PARIS, Sept 23 (Reuters) - Euronext wheat ended higher on Tuesday as renewed demand including an Algerian import tender supported a technical recovery from contract lows.

December wheat BL2Z5 on Euronext's Paris-based futures market settled 0.5% up at 190.00 euros ($224.26) per metric ton.

It briefly touched a contract low of 187.75 euros, just under a previous low of 188.00 euros from early September, but held chart support around that level.

"The 188 euro support holds for now in December Matif (Euronext) wheat despite aggressive fund sales in the previous week," Andrey Sizov, head of consultancy Sovecon, said, referring to a record short position for investment funds.

Chicago wheat Wv1 rebounded more sharply, adding around 2% to come off contract lows. GRA/

Wheat markets had been under pressure from swelling global supply as well as Monday's news that Argentina would suspend export taxes temporarily to boost dollar-generating overseas sales.

But Tuesday saw Algeria purchase an unspecified amount of wheat in an import tender, while Jordan booked 60,000 tons of wheat in a separate tender, according to traders. GRA/TEND

The announcement of a feed barley import tender by Turkey reinforced the impression that grain buyers were returning after a quiet September so far.

Traders also noted that prices reportedly paid by Algeria were higher than in its previous tender in July, suggesting physical wheat markets have been firmer than futures.

Black Sea origins were seen as best placed to cover Algeria's purchase, given a recent price advantage over west European wheat, and with a tacit exclusion of French wheat, amid a long-running diplomatic row between Paris and Algiers, expected to continue.

Traders said Ukrainian 11.5% protein wheat was currently the cheapest for the November shipment periods sought by Algeria at about $220-$223 a ton FOB, followed by Russian and Romanian at around $227-$230, with French wheat $2-$4 more expensive than Russian, depending on Euronext and currency moves.

Weekly European Union data showed the bloc's soft wheat exports so far this season were down 33% year on year, though missing French figures were still contributing to the lag.

($1 = 0.8472 euros)