EU wheat slips as euro jump and export competition weigh

PARIS/HAMBURG, Jan 20 (Reuters) - Euronext wheat fell on Tuesday, pressured by a sharp rise in the euro and results from import tenders that showed the extent of competition from Argentine and Black Sea supplies, traders said.

March milling wheat BL2H6, the most active position on Euronext's Paris-based futures, settled 0.9% down at 189.50 euros ($222.36) a metric ton, breaking a run of three daily gains.

The euro climbed against a broadly weaker dollar as a standoff between U.S. President Donald Trump and European allies that Trump has threatened with tariffs if they oppose his plan to take control of Greenland, unsettled investors. MKTS/GLOB

The euro's rise added to export headwinds for western European grain after large import purchases by Saudi Arabia and Algeria on Monday suggested cheaper supplies elsewhere in the world were widely available. GRA/TEND

ALGERIAN TENDER RESULTS

Results from the tender held by Algeria, which traders estimated had bought between 600,000 tons and 720,000 tons at around $253-$254 per ton cost and freight included, indicated Argentine wheat could be used to cover a significant part of the volume.

“The apparent success of Argentine wheat in the Algerian tender on Monday is a hard reminder of the intense competition the EU faces from Argentine wheat in our important North African markets,” one German trader said.

“Argentine wheat even seems to have swept away competition from the Black Sea in the Algerian tender.”

Argentina is expected to produce a record volume in its harvest that is winding down, allowing it to compete in North African markets usually supplied by Europe and Black Sea region.

Argentine 11.5% protein wheat for February shipment is the world’s cheapest high-volume origin at about $212-$215 a ton free on board, down about $3 a ton this week, traders said. This was about $16-$18 cheaper than French and Romanian wheat, about $10-$12 below Russian and about $15 below Ukrainian.

Weekly European Union figures showed that EU 2025/26 soft wheat exports had reached 11.8 million tons by January 15, though the data was incomplete.

Traders were monitoring the diplomatic row over Greenland for potential repercussions for EU imports of U.S. corn and soybeans, which had been threatened with EU tariffs during a previous trade standoff last year.

“There is worry the EU may impose tariffs on its large imports of U.S. soybeans which could create market turbulence,” another trader said.

($1 = 0.8522 euros)