Euronext wheat ended slightly lower on Wednesday as the market ran into chart resistance after reaching a one-month high earlier in the day.
March milling wheat, the most active contract on Paris-based Euronext, unofficially closed 0.25 euro, or 0.1%, lower at 183.25 euros ($201.98) a tonne.
It earlier reached its highest since Oct. 22 at 184.50 euros but faced strong chart resistance as it approached the 185 euro level, dealers said.
After being buoyed earlier in the week by a rally in Chicago, Paris prices drew additional support as participants covered short positions in the spot December contract in the run-up to its expiry on Dec. 10, dealers said.
Chicago wheat ticked down on Wednesday before a Thursday's holiday closure for Thanksgiving but remained well up so far this week.
"Today it's a Matif (Euronext) story and Chicago still doing very well technically," a dealer said of the trend in Paris.
A French rail strike planned for Dec. 5, as part of national protests against a government pension reform, was also creating concern about logistical snags at a time when slow selling by farmers has already created some supply tensions.
"We could be in a situation where the export lineup is strong but the rail network could be at a standstill," the dealer said.
Slow farmer selling and steady export demand continued to keep physical premiums on the French wheat market firm. Weekly Euronext data showed financial investors slightly cut their short position in the exchange's wheat futures and options in the week to November 22.
Traders were also monitoring showers in France that could further slow wheat sowing and maize harvesting already delayed by wet weather this autumn.
In Germany, cash premiums in Hamburg remained over Euronext levels, supported by a busy programme of export shipments. Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 3.0 euros over the Paris March contract. Buyers were offering around 2.5 euro over Paris, up from 1.0 euro over at the start of the week.
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