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Euronext wheat futures edged higher on Wednesday as a slide in the euro and competitive offers of French wheat in an Egyptian import tender raised hopes of more export demand.

Gains were limited as large global supplies continued to hang over wheat markets while weakness in Chicago futures also curbed Paris prices.

Benchmark December milling wheat on the Paris-based Euronext exchange settled 0.50 euro, or 0.3%, higher at 170.75 euros ($186.85) a tonne.

The contract was holding in a narrow chart range between Monday's one-week low of 170.25 euros and a one-month high of 172.50 euros struck last Thursday.

The euro fell below $1.10 to approach two-year lows against the dollar, making western European grain cheaper in dollar-priced export markets.

A latest tender by Egypt showed French wheat was the cheapest on a free-on-board (FOB) basis, although higher shipping costs compared with Black Sea origins made it unclear whether French supplies would be purchased by Egypt's GASC agency in the tender.

"French wheat is competitive," one futures dealer said. "Some people may be excited because France might sell one or two cargoes to GASC."

Export sentiment in France was also being boosted by the start of the Morocco's import season.

After a first cargo of French wheat for Morocco this season began loading at Rouen earlier this week, port data on Wednesday showed another two vessels were expected to call at Rouen in the coming days to load more wheat for Morocco.

Copyright Reuters, 2019


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