EU wheat ticks up with China in focus

PARIS, Oct 24 (Reuters) – European wheat futures edged higher on Friday in step with Chicago as traders looked ahead to U.S.-Chinese trade talks and assessed rumours that Chinese buyers were inquiring about foreign wheat. December wheat on the Paris-based Euronext market settled 0.3% up at 190.25 euros ($221.87) a metric ton, holding in its narrow trading range so far this month. Chicago wheat also ticked higher as it moved away from a five-year low struck last week. Volumes on Euronext were light with attention turning to U.S. President Donald Trump's trip to Asia next week, when he is due to hold a highly anticipated meeting with China's Xi Jinping in the midst of their countries' trade war. Agriculture is a focus of discussions given stalled U.S. soybean sales to China, its main overseas market for the crop. There was also chatter about possible Chinese demand for wheat imports from Europe and Argentina, though a lack of evidence limited price support. “This would be very welcome for the west EU after we have lost export sales to the Black Sea, but we need to see evidence of actual buying,” a German trader said. After French wheat was overlooked again in an Algerian import tender this week, amid ongoing diplomatic tensions between Paris and Algiers, traders have been watching to see if competitively priced EU wheat can attract demand elsewhere. In the important Egyptian market, Russian 11.5% protein wheat for November shipment was still just the cheapest at around $248 a ton cost and freight (c&f) included, traders said. French, Ukrainian and Romanian wheat were very close behind at around $249-$250 a ton c&f Egyptian ports, depending on Euronext and currency moves. Traders noted internal EU purchase interest for feed wheat from Spain and Ireland. A Spanish buyer was seeking about 8,000 tons of feed wheat at around 203 euros a ton c&f north Spain for November delivery. An Irish buyer was also offering around 203 euros a ton c&f for around 7,000 tons for November/December delivery. The prospect of ample global wheat production remained a curb on prices. Favourable sowing conditions in Europe for next year's harvest were adding to supply pressure. In France, farmers had sown over half the expected soft wheat area by October 20, ahead of the average pace of the past five years, according to farm office FranceAgriMer. ($1 = 0.8575 euros) (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Sahal Muhammed)

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