European wheat futures edged lower on Friday in line with weaker Chicago prices as wheat markets consolidated after rallying this week on brisk international demand. Benchmark December milling wheat on Paris-based Euronext unofficially closed 0.75 euros, or 0.4 percent, down at 201.75 euros a tonne.
A fall in the euro against the dollar lent some support to Euronext on Friday, partly offsetting a sharper fall for Chicago wheat. The return of rain to parched grain belts in northern France on Friday and showers forecast across Europe in the coming days also eased concern about sowing risks, which has been another factor in this week's price rally.
Over the week, the Euronext benchmark was up 2 percent, having rebounded from a seven-week low of 195.50 euros touched last Friday. Wheat futures have recovered this week as a recent price fall stirred demand from importers, putting attention back on an expected tightening in supply in exporting countries after weather-hit harvests this year.
In Germany, cash premiums in Hamburg ticked down as slack export demand continued after this summer's drought-reduced crop, while farmer selling was curbed by the maize harvest. "Export loadings in Germany remain depressed after the poor crop this summer," one German trader said.
"A ship is loading 40,000 tonnes of German wheat for Guinea in Africa this week, but this is modest compared with past years and is not enough to excite the market."
Standard bread wheat with 12 percent protein content for September delivery in Hamburg was offered for sale at 2.50 euros over Paris December against 3 euros over on Thursday. Feed wheat in Germany's South Oldenburg market for September/December was offered for sale well over milling wheat at about 215 euros a tonne, with buyers seeking 213 euros.
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