Euronext wheat futures edged lower on Wednesday as a pullback in Chicago encouraged the Paris market to consolidate below a two-week high struck earlier this week.
Physical premiums in western Europe were steady, however, with support from export demand and logistical difficulties linked to strikes in France over pension reform.
March milling wheat, the most active contract on the Paris-based Euronext exchange, settled down 0.75 euro or 0.4% at 185.25 euros ($204.18) a tonne.
The contract had reached 187.00 euros on Monday, its highest since Dec. 2 when that level had marked a 4-1/2 month peak.
Chicago wheat fell by around 1.5%, retreating from a 5-1/2 month high struck on Tuesday.
US grain markets rallied this week on demand hopes fuelled by a US-Chinese trade agreement as well as a planned increase in Argentine export duties.
Wheat premiums at French ports were firm as transport strikes as part of protests against government pension reform started to threaten disruption to year-end export loadings.
"In port zones, there are no trains running and the tug boats are on strike too, so everything is being slowed down," a French trader said.
"Even if premiums are attractive, you're still selling something you're not sure is going to work."
In Germany, standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 4 euros over the Paris March contract.
Buyers were offering up to 3.5 euros over Paris.
"Wheat ships set to load in Germany in the remainder of December include two vessels each of 25,000 tonnes and one of 60,000 tonnes," one German trader said.
"I think Germany's good export programme will continue into 2020."
British mills have been buying more German wheat than usual after heavy rain caused serious delays to sowing of wheat in the United Kingdom, German traders said on Wednesday.
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