European wheat futures climbed in Paris on Monday, recovering from a sharp drop on Friday. This rise followed Algeria's issuance of a wheat purchase tender and fading hopes for a Black Sea peace deal. The benchmark contract on the Euronext exchange gained 0.3%, reaching €242.75 ($271.15) per metric ton by 1534 GMT. The euro's weakness also bolstered export prospects.
Algeria's state grains agency, OAIC, launched an international tender for milling wheat, with a closing date set for Tuesday. The tender initially sought 50,000 metric tons, though Algeria frequently purchases much larger quantities. Traders noted that this tender could remove several hundred thousand tons of wheat from the market. The country had bought around 500,000 tons in its last tender on September 15.
The impact of Algeria's tender was somewhat limited because French wheat was reportedly excluded due to political tensions between the two nations. Additionally, the market found support from diminished expectations of a Black Sea peace deal that would allow Russia and Ukraine to resume ship-borne exports.
US President Donald Trump's announcement of a Ukrainian-Russian energy ceasefire on Sunday had initially raised hopes for resuming Black Sea wheat exports. However, recent attacks had halted these exports, contributing to the uncertainty in the market.