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Euronext wheat futures were little changed on Friday, holding near a two-month high as improving export prospects for western European wheat underpinned the market.

However, prices were capped by technical resistance, farmer selling and the need to sustain brisk exports following a bumper harvest in Europe this year.

December milling wheat on Euronext was unchanged on the day at 176.25 euros ($193.49) a tonne by 1503 GMT.

It was trading just below Thursday's high of 176.50 euros, a level not previously reached since August 6, and dealers said it continued to face a resistance zone at 177.50-177.75 euros.

Chicago wheat was also little changed as US grain markets turned their attention towards government crop forecasts next week.

Paris prices have rallied in the past week, with two-year lows for the euro against the dollar and signs of demand for French wheat boosting export sentiment.

Egypt notably bought 60,000 tonnes of French wheat in a tender on Wednesday.

"The French wheat sale to Egypt was a positive sign," Nathan Cordier of consultancy Agritel said.

"But it's tricky for our prices to rise faster than Black Sea ones, we can't afford to lose our competitiveness."

News this week that Morocco awarded the entire 576,000 tonnes of soft wheat imports available in a reduced-tariff tender for European Union supplies also reinforced export prospects.

In Germany, the euro's recent slide was seen as supporting export sales after a slow start to the season.

At least two shiploads of German wheat have recently been sold for export, one in November and the other in November/December. Buyers in South Africa or western Africa were seen as likely importers.

This would follow shipments in September of 56,000 tonnes of German wheat to South Africa and 50,000 tonnes to Guinea.

"Following the recent weakness in the euro, German wheat is starting to look more price competitive on especially against the Russian 12.5% protein grade," one German trader said.

"But wheat from the Baltic States including Lithuania is still looking even cheaper."

Standard bread wheat with 12% protein for October delivery in Hamburg was offered for sale unchanged at two euros under Paris December. Buyers were seeking at least three euros under Paris. German markets were closed on Thursday.

Rain in the past two weeks was slowing maize harvest and wheat sowing work in France, although the moisture was seen as welcome after the drought this summer.

French farmers had sown 1% of the expected soft wheat area for next year's harvest by September 30, unchanged from a week earlier, farm office FranceAgriMer said.

Copyright Reuters, 2019


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