European wheat futures rise as Algeria issues purchase tender

European wheat futures in Paris surged on Monday, following a significant decline on Friday. This increase occurred as Algeria announced a wheat purchase tender and as hopes for a Black Sea peace deal diminished. The benchmark December milling wheat on the Euronext exchange in Paris rose by 0.3% to €242.75 ($271.15) per metric ton at 1534 GMT.

The weakening euro also aided the export sector. Algeria's state grains agency, OAIC, launched an international tender to acquire milling wheat, with a deadline on Tuesday. The tender set a nominal quantity of 50,000 metric tons, although Algeria, one of the world's largest wheat importers, usually acquires significantly more through these tenders.

According to a futures broker, the OAIC tender could draw several hundred thousand tons of supplies from the wheat market. Traders suggested that this move might substantially impact the wheat market. It is noted that the Algerian tender might exclude French wheat due to political tensions between France and Algeria. Prices were also bolstered by expectations of a reduced likelihood of progress towards a Black Sea peace deal.

This deal would allow Russia and Ukraine to resume ship-borne exports of wheat from the Black Sea. However, these exports ceased following recent attacks. The article was produced with AI assistance and subsequently reviewed by an editor.