March milling wheat, the most active contract on Paris-based Euronext, settled 0.50 euro, or 0.3 percent, higher at 161.00 euros a tonne, its highest level since December 22. That also left it higher over the week after a recovery from a life-of-contract low of 158.25 euros on Tuesday. A drop in Chicago futures, linked to profit-taking after a one-month high this week, was cushioned by a weaker euro, which was easing back from this week's four-month peak against the dollar.
The recent strength in the euro may penalise French chances in an import tender held on Thursday by Algeria, the biggest overseas market for French wheat. Initial estimates reported by traders on Friday pointed to a purchase of at least 390,000 tonnes, with prices cited between $209.25 and $213 a tonne, cost and freight, seen suggesting Argentine wheat could claim a chunk of the optional-origin deal.
"The choice of origin remains to be determined, but the average sale price from what we know so far is about $211 C&F and that reflects more the supply cost from Argentina than from France," one trader said of the Algerian tender. Delayed European Union data published on Friday underscored a difficult export season, with EU 2017/18 soft wheat exports running 20 percent behind last season's level as of January 2.
Traders were also monitoring winter weather risks for wheat crops. Severe cold in US wheat belts this week has fuelled worries about damage to crops already enduring prolonged dryness. In Europe, heavy rain in France was causing concern about excess moisture, while mild weather across the region was leading to talk about a lack of snow cover should a cold spell come.
But traders said crop concerns were still tentative and the market lacked impetus in a shortened new year trading week. The end of Christmas and New Year holidays in Russia and Ukraine next week should boost activity, while crop forecasts next Friday from the US government were also awaited for fresh direction, traders added.