Euronext wheat holds firm on export glimmer

European wheat futures edged up on Thursday to extend a bounce from contract lows, helped by fresh demand from importers, traders said.

Gains remained modest, with a backdrop of rising global supply curbing cereal markets.

December milling wheat (BL2Z5), the most-active position on Paris-based Euronext, settled 0.1% up at 188.00 euros ($220.15) a metric ton.

It was recovering from a contract low of 185.00 euros during Wednesday's session.

Chicago wheat ZW1! also rose for a second session to move away from contract lows.

Euronext drew support from a broad rebound in Chicago grains after U.S. President Donald Trump said in a social media post on Wednesday that soybeans would be a major topic of discussion when he meets Chinese counterpart Xi Jinping in four weeks.

"Global grains remain structurally heavy with strong supply from Australia, Canada, and Argentina pressuring prices. Yet, U.S.-China trade headlines and currency moves could spur sharp corrective rallies," British merchant ADM Agriculture said.

The wheat market found its own impetus in export demand.

Saudi Arabia on Thursday announced a tender to buy 420,000 tons of hard wheat, with results expected on Monday.

There was more talk that this week's price lows had drawn interest in French wheat from buyers in Morocco and Egypt.

Traders said at least two cargoes of French wheat were believed to have been sold for Morocco but that it was unclear if any new deals had been struck with Egypt.

LSEG data showed a vessel was due to call at Rouen port next week to load wheat for Egypt, in what will be the last of three such shipments sold in August. (GRAIN/SHP/FR)

Physical premiums in France have increased this week, with fresh demand coming at a time of slow selling by farmers, according to traders.

An easing euro EURUSD and firm prices in Russia, the world's biggest wheat supplier, have also boosted French competitiveness overseas.

Russian wheat export prices started October at a one-month high as limited supply from regions close to ports continued to create logistical snags, LSEG analysts said in a note.

($1 = 0.8540 euros)