Paris wheat gains as Algerian tender offsets weaker Black Sea peace hopes

what happened

According to Newsmetry API, European wheat futures advanced on Monday, recovering part of Friday’s sharp decline. The market received support from a tender by Algeria’s state grains agency OAIC, a weaker euro that improves export competitiveness, and diminishing expectations for a Black Sea peace agreement.

December milling wheat on the Paris-based Euronext exchange was up 0.3% at €242.75 ($271.15) per metric ton at 1534 GMT. OAIC opened an international tender for milling wheat that closes on Tuesday. The stated volume was the customary 50,000 metric tons, although Algeria, among the world’s largest wheat importers, frequently buys much more. Its previous tender on September 15 resulted in purchases of about 500,000 tons.

Traders nevertheless believed French wheat would again be left out because of political tension between France and Algeria. Hopes that Russia and Ukraine could restart seaborne grain shipments also weakened after Ukrainian President Volodymyr Zelenskiy said Russia had struck at least six energy targets. The report followed US President Donald Trump’s announcement on Sunday of an energy ceasefire between Ukraine and Russia.

why it matters

The Algerian tender may temporarily remove substantial supply from the market, while currency movements and developments around the Black Sea remain important influences on wheat export prospects and futures.

instruments