EU wheat ticks down in quiet trade before Algerian tender

PARIS, Oct 21 (Reuters) - European wheat futures edged down in light trade on Tuesday as increased production estimates for exporting countries maintained supply pressure while traders awaited the outcome of a tender by major importer Algeria.

December wheat BL2Z5 on the Paris-based Euronext market settled 0.1% down at 188.25 euros ($219.54) a metric ton.

Chicago wheat Wv1 also edged lower to hold near a five-year low. GRA/

Analysts have raised their estimates for Australia's wheat harvest, a Reuters poll showed on Monday, while consultancy IKAR said on Tuesday it had further raised its estimate for Russia's wheat crop.

At the same time, reaction to news of an Algerian wheat tender to be held on Wednesday was muted, with French supplies expected to be sidelined again, due to a diplomatic rift between Paris and Algiers, and plenty of competition from other origins.

“New import demand with a tender this week from big-buyer Algeria is welcome but the EU will face a tough challenge to win sales in the face of cheap prices from the Black Sea and South America,” one German trader said. “I would tip the Black Sea to supply much of any Algerian purchase possibly along with Argentina.”

Cheap prices for what is expected to be a bumper harvest in Argentina have raised expectations the South American country could ship wheat to North Africa this season, with talk last week of sales to Morocco.

Argentine 11.5% wheat for October/November shipment was around $204-$210 a ton FOB, translating to around $242 to $247 a ton cost and freight included (c&f) to Algeria, the trader said.

However, Algeria's tender terms requiring any supplies from South America to be loaded in November, rather than December as for European crop, could rule out significant offers from the upcoming Argentina harvest, traders added.

In France, cash premiums remained firm, reflecting a busy loading programme and slow selling by farmers.

Weekly European Union data showed the bloc's 2025/26 soft wheat exports were 21% below the year-ago level, though data for large exporters France and Bulgaria remained incomplete.

($1 = 0.8575 euros)