Euronext wheat firm with Chicago

Euronext wheat ticked up on Tuesday, supported by strength in Chicago futures as investors assessed weather threats and macroeconomic news.

Grain markets lacked clear fundamental direction, with traders setting weather risks and new import demand against availability of competitively priced Black Sea grain.

March wheat (BL2H3) on Paris-based Euronext settled up 0.25 euros, or 0.09%, at 287.75 euros ($312.53) a tonne, holding below a two-week peak struck last Thursday.

Chicago wheat ZW1! recovered from an earlier fall to hit a four-week top.

Weather risks for U.S. winter wheat crops and investor hopes that the U.S. Federal Reserve will moderate its interest rate outlook after a policy meeting on Wednesday lent support to Chicago futures.

"We're in a wait-and-see market," one futures dealer said.

"Demand is there with Egypt and there's weather concern about Argentina, but the market is struggling for impetus."

A wheat import tender called by Egypt for Thursday was welcomed as new demand, though wheat from western Europe was again expected to face heavy Black Sea competition.

German traders said Jordan's wheat tender on Tuesday highlighted cheap Black Sea prices.

Jordan's state grains buyer purchased about 60,000 tonnes of milling wheat, with Romanian origin expected to be supplied.

Traders said other Black Sea region wheat, including Russian and Bulgarian, was also offered heavily in the tender.

“The focus in past weeks has been on low prices offered from Russia and Ukraine, but Romania and Bulgaria are also offering very cheap prices,” one German trader said.

In Germany, standard 12% protein wheat for February delivery in Hamburg was offered for sale at a premium of about 11 euros over the Euronext March contract, but with little purchase interest.

In France, there was also a lull in new demand after a brisk export programme so far this season. (GRAIN/SHP/FR)

Traders said dockers joined the latest day of industrial action against the French government's planned pension reform, bringing grain loading to a halt in Rouen and elsewhere, adding that the one-day interruption was too short to affect exports.

($1 = 0.9207 euros)