Euronext wheat futures fell on Thursday to a one-week low, pressured by weakness in Chicago and signs of increased competition in export markets.
March milling wheat, the most active contract on the Paris-based Euronext exchange, settled down 1.00 euro, or 0.50%, at 183.00 euros ($201.70) a tonne.
In closing deals it touched a one-week low of 182.75 euros, as the contract extended a retreat from Monday's 4-1/2 month high of 187.00 euros.
Chicago wheat, the global benchmark, also eased.
An optional-origin wheat purchase on Wednesday by Algeria, estimated by traders at around 500,000 tonnes, drew limited reaction from the market.
The volume represented a typical monthly volume for Algeria and should bring fresh sales for French wheat in its main overseas market.
However, Argentine wheat was expected to fill some of the order given attractive prices for its new crop, traders said.
Egypt's purchase of 295,000 tonnes of Russian wheat in a tender on Tuesday had also underlined renewed competition for Western European wheat.
"Black Sea prices are looking more attractive in export markets which could mean more competition for new sales," a German trader said.
"Argentine wheat also looks set to win part of the Algerian tender today which is also unfortunately a sign of more competition to Europe in Middle East and African export markets."
However, a continuing programme of export shipments kept German physical premiums in Hamburg stable.
Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 2.5 euros over the Paris March contract.
Buyers were offering around 1.5 euros over Paris.
"There is a steady call up of wheat supplies to load ships which are supporting premiums," the German trader said.
"Another large ship is due to arrive in a German port to load wheat next week."
French physical premiums also held at recent levels, partly due to a lack of sale offers.
Traders were monitoring a strike launched on Thursday against a government pension reform, for potential disruption to grain logistics.
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