March milling wheat on Paris-based Euronext settled 0.3 percent higher at 169.75 euros a tonne, just off an intraday peak of 170.00 euros. Chicago wheat, the global benchmark, resumed a recent rally to add more than 1 percent. US prices drew support from an easing dollar and crop concerns, after data showed a decline in crop ratings last month in some key US wheat producing states and weather forecasts called for a cold snap.
A tender being held by Algeria on Wednesday could favour EU wheat, traders said. Argentine wheat was not seen as being in contention this time after a run-up in prices that had also sidelined the origin in a tender held last week by Egypt, while shipping costs and dollar strength were expected to disadvantage US wheat. Algeria usually imports mostly French wheat but a poor 2016 harvest in France has led exporters to supply more grain from other origins.
In other export news, Ethiopia has issued a tender to buy 720,000 tonnes of milling wheat with a February 3 deadline. Rapeseed futures on Euronext extended their gains, with spot February adding more than 1 percent to trade near a contract high of 420.25 euros a tonne set last month. Rapeseed drew support from a rebound in US soyabeans and higher crude oil.
The Euronext exchange reported December and 2016 trading volumes after Tuesday's market close. The average daily volume for commodities futures and options was 38,756 lots in December, up 0.8 percent from the same month in 2015, and 53,536 lots for 2016 as a whole, down 4.1 percent from 2015, Euronext said.