Wheat was mostly weaker in key western European markets on Friday in step with Chicago, although upward momentum pushed prices higher in import-needy Spain. Milling wheat futures in France, Europe's biggest wheat exporter, were slightly lower in late trading in an echo of losses on the Chicago Board of Trade but losses were limited by a weak euro and strong underlying fundamentals.
"People are generally bullish. We've had some adjustments this week but the market has held up," a French dealer said. Traders also said movements were stifled by hesitancy ahead of a closely watched supply and demand report from the US Department of Agriculture due on January 12
"Until then, you can expect the market to stay where it is at these high levels," a grains analyst said. The most-active contract in Paris, March, was down 0.25 euros or 0.10 percent at 251.25 euros ($325.9) a tonne by 1655 GMT, but still within sight of a contract high of 254.25 euros set on Monday.
Front-month January, which expires on January 10, was down 2.50 euros or 0.97 percent, at 255.25 euros. Prices remained near contract highs struck at the start of the week, with traders still concerned about crop weather around the world. Export prospects were further boosted by a four-month low for the euro against the dollar.
French wheat was seen as well placed to be chosen in a 350,000-tonne purchase by Algeria while European wheat was tipped to clinch part of a 100,000-tonne Tunisian order. "French wheat is maintaining a major role in exports in an uncertain international context," the analyst said, noting weather problems that have hindered Australia's harvest.
In an indication of strong activity in European wheat amid weather-related volatility, exchange operator NYSE Liffe showed Paris wheat led gains in activity in European agricultural commodity futures last year, with volumes more than doubling.
Spanish wheat rose to 33-month highs in step with recent firmness in Paris, although trade was thin because many players had taken a long weekend's break after a public holiday on Thursday. Prompt feed wheat in leading grains port Tarragona - a benchmark in import-dependent Spain - was quoted at 245-248 euros/tonne ex-store, up 3-6 euros from Monday.