Euronext wheat fell on Thursday, retreating from a three-month high touched this week as technical factors and caution about export prospects curbed recent price momentum.
But German premiums rose as firm prices in top exporter Russia, steady international demand and worsening harvest prospects in Argentina and Australia continued to underpin wheat markets, traders said.
Benchmark December milling wheat on the Paris-based Euronext exchange settled 1.00 euro or 0.6% lower at 180.00 euros ($199.87) a tonne, as it eased further from a three-month top of 182.25 euros reached on Monday and again on Tuesday.
The contract slipped to its lowest in almost a week at 179.75 euros in late trade, testing the psychological 180 euro threshold ahead of major chart support around 177 euros, dealers said.
The weaker trend in Paris was fuelled by a drop in Chicago, where lower-than-expected weekly US export sales reinforced consolidation below a 3-1/2 month high earlier in the week.
"You can tell the wheat market needed to pause after being a bit overpriced," a futures dealer said.
"We're not going to (get) carried away about Algeria buying 600,000 tonnes as it's a destination that's already factored into EU supply and demand, plus this may be the last tender before Argentine competition arrives."
Algeria's purchase on Tuesday, one of a series of tender deals by importing countries that has supported wheat prices, is expected to be mostly sourced from France.
A slowing in loading activity at French ports has raised concern about a lull in French exports.
However, in Germany, cash premiums in Hamburg were firmer, with the prospect of Iran resuming significant wheat imports boosting sentiment.
"Iran, one of Germany's largest wheat customers in past years, is set to import wheat and with Russian prices high there are hopes we will see more Iranian sales after a long gap," one German trader said.
"Much will depend if the Iranians can get a feasible payment system under way in the face of sanctions."
Iran plans to import 3 million tonnes of wheat this Iranian calendar year, said the country's Federation of Food Industry Associations on Wednesday.
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