Euronext wheat steady as traders assess exports

PARIS, Oct 23 (Reuters) - Euronext wheat ended little changed on Thursday as traders assessed heightened tensions over the war in Ukraine, rumours of Chinese interest in foreign wheat and results from an Algerian tender that underscored stiff export competition.

December wheat BL2Z5 on the Paris-based Euronext market settled flat on the day at 189.75 euros ($221.29) a metric ton. Deferred positions closed slightly higher.

Results from an Algerian import tender, in which traders said the North African country's state buyer bought around 600,000 tons, suggested merchants would choose supplies from the Black Sea region and possibly Argentina, with France thought to be tacitly excluded again due to a diplomatic rift between Paris and Algiers.

“This is bearish as such big export markets cannot easily be replaced by France at this time of big supplies in the big exporting regions. We need China back as a buyer,” one German trader said.

China has reduced its wheat imports and not taken any French wheat for over a year. However, traders said there was market talk that China was asking for price offers of wheat from the European Union and Argentina, adding this may be simply price-checking as no deals were reported.

Argentine wheat is currently the cheapest export origin worldwide at around $204-$209 a ton free on board (FOB).

The looming harvest there is expected to produce a bumper volume but traders said it was too early to anticipate crop quality. The November South American shipment period specified in Algeria’s tender may also be too early for merchants to secure Argentine supplies for that order.

Chicago wheat Wv1 rose more sharply to move away from a five-year low struck last week. The gains were supported by investor hopes of progress in U.S. trade talks with China and reaction to U.S. sanctions on two major Russian oil firms, the first Ukraine-related sanctions on Russia to be issued by U.S. President Donald Trump in his second term. GRA/

An increase in the International Grains Council's monthly forecast for 2025/26 global wheat production to a new record nonetheless highlighted ample supply in exporting countries.

($1 = 0.8575 euros)