PHOTO
PARIS, Oct 25 (Reuters) - Wheat prices in western Europe were mostly steady on Tuesday, supported by a seven-month low for the euro and a latest import tender by Egypt that should absorb more Black Sea supplies.
Price movements were limited, however, as benchmark Paris futures stayed within a well-established range and ample supplies continued to keep a lid on international prices.
December milling wheat
CME Group's December EU wheat
The euro fell to a new low since March against the dollar, making grain from the euro zone more competitive overseas.
European prices also drew support from a slight upturn in Chicago wheat, which steadied after a near 3 percent slide on Monday.
"The market is staying within recent support and resistance levels, and wheat in Chicago is struggling to break decisively above the $4 barrier," a futures trader said.
"We're likely to see this consolidation continue for a while in the absence of significant news flow."
In Germany, standard wheat with 12 percent protein content for November delivery in Hamburg was offered for sale at 3.0 euros over the Paris December contract against 2.5 euros on Monday. Buyers were seeking 2.5 euros over.
"The euro is falling substantially against the dollar which is certainly a positive development for wheat exports," one German trader said.
"About 90,000 tonnes of wheat was loaded for Algeria in German ports so far in October under old contracts and there is hope a lot more will be loaded in November and December under the latest Algerian tender purchase."
Traders were also awaiting the outcome of Egypt's tender, with offers showing Russian wheat best placed and Romanian wheat also in contention.
"It is also positive that Egypt seems to be returning to a more normal purchasing programme after the ergot disruption this year as this helps remove cheap Black Sea supplies from the market," the German trader said.
Russia's July-November grain exports could reach a record thanks to a resumption in sales to Egypt, the world's largest wheat importer, the SovEcon consultancy said.
Egypt's tender purchases had been disrupted earlier in the season due to tensions with suppliers over the country's policy regarding common grain fungus ergot.
(Reporting by Valerie Parent and Gus Trompiz in Paris and Michael Hogan in Hamburg, editing by David Evans) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
Price movements were limited, however, as benchmark Paris futures stayed within a well-established range and ample supplies continued to keep a lid on international prices.
December milling wheat
CME Group's December EU wheat
The euro fell to a new low since March against the dollar, making grain from the euro zone more competitive overseas.
European prices also drew support from a slight upturn in Chicago wheat, which steadied after a near 3 percent slide on Monday.
"The market is staying within recent support and resistance levels, and wheat in Chicago is struggling to break decisively above the $4 barrier," a futures trader said.
"We're likely to see this consolidation continue for a while in the absence of significant news flow."
In Germany, standard wheat with 12 percent protein content for November delivery in Hamburg was offered for sale at 3.0 euros over the Paris December contract against 2.5 euros on Monday. Buyers were seeking 2.5 euros over.
"The euro is falling substantially against the dollar which is certainly a positive development for wheat exports," one German trader said.
"About 90,000 tonnes of wheat was loaded for Algeria in German ports so far in October under old contracts and there is hope a lot more will be loaded in November and December under the latest Algerian tender purchase."
Traders were also awaiting the outcome of Egypt's tender, with offers showing Russian wheat best placed and Romanian wheat also in contention.
"It is also positive that Egypt seems to be returning to a more normal purchasing programme after the ergot disruption this year as this helps remove cheap Black Sea supplies from the market," the German trader said.
Russia's July-November grain exports could reach a record thanks to a resumption in sales to Egypt, the world's largest wheat importer, the SovEcon consultancy said.
Egypt's tender purchases had been disrupted earlier in the season due to tensions with suppliers over the country's policy regarding common grain fungus ergot.
(Reporting by Valerie Parent and Gus Trompiz in Paris and Michael Hogan in Hamburg, editing by David Evans) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
