European wheat futures traded around a one-month high on Thursday, supported by healthy export activity and a lower euro, but a subdued US market kept Paris prices in check. March milling wheat on the Paris-based Euronext market was down 0.25 euros or 0.1 percent at 198.75 euros a tonne at 1621 GMT. The contract earlier reached 199.50 euros, matching a one-month high set on Wednesday, but it remained shy of the psychological threshold of 200 euros.
Chicago wheat prices also edged lower after hitting a two-month high in the previous session. A fall in the euro against the dollar after a seven-week high this week boosted export sentiment in Europe, while weekly European Union wheat export volumes showed a strong rebound after a fall last week. "The euro seems to be coming off its peaks which is a hopeful sign for EU wheat exports," a German trader said. Traders also said that political turmoil in Ukraine could limit grain flows, particularly in maize, from the major Black Sea exporter as farmers hold on to supply and unrest threatened to disrupt logistics. "Cargoes currently in ports are loading, but it is clear the situation will slow things down at a time when Ukrainian maize was the most competitive for many importers," a French trader said.
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