March 12, 2018 / 5:40 PM / a year ago

EU wheat edges lower in wake of Chicago, eyes on Algeria tender

    PARIS, March 12 (Reuters) - European wheat prices edged
lower on Monday, pressured by weaker U.S. markets, the closure
of the front month contract and a firm euro against the dollar,
traders said.
    May milling wheat on Paris-based Euronext, fell 0.3
percent by 1657 GMT to 162.75 euros a tonne, still above its
support pegged at 162.00 euros.
    Front-month March which expires on Monday, was down
3.00 euros or 1.9 percent to a five-week low of 157.00 euros a
    In Chicago, most active wheat was down 0.6 percent in
technical selling.
    Volumes traded were thin as operators awaited the results of
a tender by Algeria's state grain agency OAIC to buy wheat for
June shipment, the last one of the current 2017/2018 season.
    "The market will look at whether the OAIC complements the
small volume bought for May (shipment) or if sticks to its needs
for June," a trader said.
    French wheat was likely to win most of the tender due to a
lack of competition but some traders stressed it was much needed
as France's main export market had become its sole market.
    "Argentine wheat is no longer in the race but at the same
time outside French wheat is still lacking outlets apart from
Algeria," the trader said.
    Traders said wheat had been offered in the tender - whose
bidding deadline was on Monday - at around $228 per tonne, cost
and freight included (C&F), while Algiers was asking for around
$224 to $225 per tonne.
    Operators reported strong sales of French barley towards
China. Volumes were estimated at three to five panamax cargoes
at prices below $245 C&F.
    In Germany, wheat cash market premiums in Hamburg ticked up
to compensate for afternoon weakness in Paris, in low producer
selling as farmers continued spring field work.
    Standard bread wheat with 12 percent protein content for
March delivery was offered for sale up 0.5 euro at 3.5 euros
over Paris May.
    "Russian wheat prices have been showing a firmer trend in
recent weeks and have been losing some of their price advantage
over German wheat," one trader said. "But the main interest
today is again internal demand rather than exports, especially
for feed wheat."
    Feed wheat prices in Germany's South Oldenburg market were
again over milling wheat on demand from feed makers, with March
onwards delivery offered for sale unchanged at 174 euros a tonne
and buyers seeking 173-172 euros.
 Prices at 1657 GMT                                            
                             Last  Change    Pct     End    Ytd
                                            Move    2017    Pct
 Paris wheat May           162.75   -0.50  -0.31  162.50   0.15
 Paris maize Jun           163.50    0.00   0.00  163.50   0.00
 Paris rape May            344.75   -1.50  -0.43  347.75  -0.86
 CBOT wheat May            486.25   -3.00  -0.61  427.00  13.88
 CBOT corn May             390.75    0.25   0.06  350.75  11.40
 CBOT soy May             1042.00    2.75   0.26  951.75   9.48
 WTI crude oil              61.11   -0.93  -1.50   60.42   1.14
 Euro/dlr                    1.23    0.00   0.09               
 Most active contracts - Wheat, corn and soy US cents/bushel,
 Paris futures in euros per tonne

 (Reporting by Valerie Parent in Paris and Michael Hogan in
Hamburg, writing by Sybille de La Hamaide and Dasha Afanasieva)
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