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Euronext wheat futures edged higher on Tuesday to trade around a seven-week high as fresh weakness in the euro bolstered export hopes and added to support from lower than expected US grain stocks and global weather risks.

Benchmark December milling wheat on the Paris-based Euronext exchange settled 0.50 euros, or 0.3%, higher at 175.25 euros ($191.64) a tonne.

It earlier rose to of 176 euros, surpassing a seven-week high of 175 euros touched on Monday.

But dealers said it failed to test the next resistance at 177-178 euros, curbed by farmer selling, an easing in Chicago futures and a steadying in the euro after it hit a 28-month low against the dollar.

"There was some decent momentum with the euro, international demand and weather stress in Australia, Argentina and Canada," one futures dealer said.

"At the same time, we've seen some farmer selling these past days."

Grain markets also drew support from a Monday rally in Chicago after the US Department of Agriculture (USDA) pegged quarterly US stocks of corn and soybeans below trade expectations.

After a string of import tenders in the past two weeks, traders are awaiting the result of a tender by Morocco on Wednesday to import European Union wheat.

Morocco's state grain agency ONICL on Tuesday said it awarded 30,000 tonnes of US wheat imports under a reduced-tariff quota. Demand in the EU wheat tender is expected to be higher.

Copyright Reuters, 2019


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