European Wheat Futures Rise Following Algerian Purchase Tender

European wheat futures rose on the Euronext exchange in Paris on Monday, with benchmark December milling wheat increasing 0.3% to €242.75 per metric ton. This increase followed a sharp price decline on Friday and was primarily driven by an international purchase tender issued by the Office Algérien Interprofessionnel des Céréales, the state grains agency of Algeria.

While the tender nominally seeks 50,000 metric tons, traders expect the actual purchase to be significantly higher, potentially removing several hundred thousand tons from the market. The price surge was partially tempered by reports that French wheat was excluded from the tender due to political tensions between France and Algeria.

Additional support for market prices came from a weakening euro and fading hopes for a Black Sea peace deal. Although Donald Trump announced a Ukrainian-Russian energy ceasefire on Sunday, expectations for the resumption of ship-borne wheat exports from Russia and Ukraine have weakened following recent attacks.