Euronext wheat eases with Chicago
PARIS, Sept 1 (Reuters) - Benchmark wheat futures on Euronext eased on Wednesday, pressured by weaker Chicago prices and a firm euro, as wheat markets sought fresh direction after scaling eight-year highs last month.
December milling wheat BL2Z1, the most active contract on Paris-based Euronext, settled down 2.50 euros, or 1.0%, at 242.75 euros ($287.76) a tonne.
It held above a near two-week low of 241.25 euros touched in the previous session, underpinned by a chart support zone at 242.50-242.75 euros, according to dealers.
Chicago wheat fell as the market looked beyond recent setbacks in northern hemisphere harvests and reacted to falling corn and soybean prices. GRA/
Next week's expiry of September futures BL2U1, which has seen volatile moves as market participants have reacted to a rain-hit French harvest, was also weighing on Euronext trade.
The front-month contract settled up 0.8% at 250.75 euros in thin volumes.
Traders were also assessing a purchase by Algeria, the main export market for European Union wheat.
Algerian state grains agency OAIC was thought to have bought between 460,000 and 490,000 tonnes of optional-origin wheat in a tender on Tuesday. nL1N2Q30IY
OAIC's reported willingness to accept wheat with test weights, a key milling criteria, below its usual requirements could help some of the volume to be sourced from France, traders said.
German wheat was expected to extend a run of sales to Algeria.
“Algeria is shaping up to be Germany’s biggest wheat export customer this season,” one German trader said.
Two ships were currently loading 30,000 tonnes each in Germany for Algeria and another three 30,000 tonne cargoes were expected to follow in the coming days, the trader added.
However, there was disappointment about late rain damage to wheat in Schleswig-Holstein, a region that supplies the ports of Hamburg and Rostock.
“A lot of the final harvest volume in Schleswig-Holstein is likely only to be feed quality and exporters will have to start making contact with farmers in other regions, especially east Germany,” the trader said.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale at around 9 euros over Paris December BL2Z1. Buyers were seeking about 7 euros over.
($1 = 0.8436 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg
Editing by Mark Potter)