The price of European wheat edged up on Tuesday, as weather risks in Russia coupled with an attack on a grain terminal in Ukraine offset the pressures from export competition.

December wheat traded on Paris' Euronext closed 0.5% higher at 229.75 Euros ($252.17) per metric ton, but did not break chart resistance between 230-231 Euros.

The Russian government is expected to release a revised estimate of the harvest this week following adverse weather conditions. Traders will also be monitoring rain forecasts for regions in Russia where drought has hindered sowing.

The news that a Russian rocket had hit a grain ship in a Ukrainian harbor on Monday, the second attack of this kind in just a few days according to officials, kept people's attention on the war risks in Black Sea trade.

The rising Russian prices suggest that the supply pressure is decreasing from harvests in the northern hemisphere.

Exports of Russian and other Black Sea origins are still large and competitively priced.

Algeria was tipped on Tuesday to purchase Black Sea wheat, including Russian wheat, after a Saudi purchase on Monday that was expected to come mainly from Russia.

Initial estimates by traders indicate that the Algerian state grain agency OAIC has booked between 360,000 and 390,000. This is due to the renewed diplomatic tensions between Algerian and French.

One German trader stated that "Russian exports prices have increased slightly, but they are still significantly cheaper than the west EU." "Russian exports remain large, and low Russian prices will likely dominate export sales in this week."

The price of 12.5% Russian Black Sea wheat shipment for October/November was around $233-$235 per ton FOB on Tuesday, which is about $20 more than the west EU and $8-10 over Romania

The European Commission reported Tuesday that soft wheat exports from the European Union for 2024/25 had fallen by 29% to 6.35 million tons as of Oct. 6, though the data for some countries was still incomplete. $1 = 0.9111 Euros (Reporting from Gus Trompiz and Michael Hogan, Hamburg) Editing by David Goodman

(source: Reuters)