EU wheat holds firm on export boost, maize jumps on French harvest fallout

PARIS, Oct 14 (Reuters) - Euronext wheat extended gains on Wednesday as a large purchase by Algeria and a slide in the euro boosted export sentiment.

Benchmark December milling wheat on Euronext settled 1% up at €248.25 a metric ton after the day session. It earlier touched a one-week high at €248.50 as it rose for a third day.

The front-month contract led gains, with a trader estimating that Algeria booked around 700,000 tons of wheat in a tender on Tuesday, suggesting near-term demand for European Union wheat.

Chicago wheat was little changed, curbed by the US corn harvest and the dollar's jump following a higher-than-expected US inflation reading. FRX/

"Euronext is holding up better because EU wheat is seeing stronger export demand," CM Navigator analyst Donatas Jankauskas said.

A drop in the euro to a 17-month low against the dollar also reinforced EU export prospects.

However, gains were capped by continuing Russian wheat exports through the Baltic Sea, and expectations of strong supplies from upcoming Southern Hemisphere harvests.

"Optimism was blunted by market belief that Russian wheat shipped from the Baltic Sea will be used for a fair slice of the Algerian purchase, along with possibly Argentine wheat,” a German trader said.

“Argentina’s wheat harvest generally starts in November and could help relieve the loss of Russian and Ukrainian shipments.”

The trader said a large shipment of 50,000 tons of Russian 12.5% protein wheat was offered for sale in the low $270s a ton FOB for November shipment from St Petersburg.

In France, farm office FranceAgriMer raised its forecast for French soft wheat exports outside the EU to 6.5 million tons this season, 13% below last season.

The office cut its outlook for French maize ending stocks to a 36-year low to factor in a dire harvest.

On Euronext's smaller maize market, November futures settled 4.8% up at €303 a ton, after hitting a near four-year high for a front-month price of €304.75.

The shortfall in French maize supply was prompting participants to cover positions, traders said.

Financial investors increased marginally their net long positions in Euronext wheat last week, data from the exchange showed.