Euronext wheat eased for a second day on Wednesday in line with Chicago as wheat futures saw technical selling after a recent rally and forecasts of rain across Europe eased concerns about parched crops.
May milling wheat on Euronext settled down 2.25 euros, or 1.1%, at 194.75 euros ($212.43) a tonne, after earlier falling to a one-week low of 194.25 euros.
The expiry on Wednesday of options against May futures also led to technical adjustments, traders said.
The spot contract had on Tuesday reached 199.50 euros, equalling a level set last Thursday that marked the contract's highest since August 2018 and a highest spot price since January this year.
It then retreated as US futures slid and after Egypt booked only 120,000 tonnes of Russian wheat in a keenly awaited return to the market.
However, cash markets in western Europe held steady, as overall export activity was brisk and a move by Romania to halt grain shipments due to the coronavirus crisis was seen shifting some demand to other exporting countries.
"Some were disappointed by Egypt only buying 120,000 tonnes," a futures dealer said.
"But Egypt stated it would look to import another 800,000 tonnes while harvesting. France may be well placed to take part in the near future, especially as Romania temporarily banned exports."
Farm office FranceAgriMer increased its monthly forecast of French soft wheat exports outside the European Union this season to a record 13.2 million tonnes, citing brisk demand from China and limited disruption to logistics during the coronavirus lockdown.
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