European wheat prices fell on Wednesday in light volumes as the market pulled back after a rally to a two-week high in the previous session. Brisk export activity continued to underpin prices, with a weaker euro further brightening EU export prospects. But a broadly favourable outlook for this summer's harvest in Europe was capping the market. September milling wheat on the Paris-based Euronext exchange was down 0.6 percent, or 1 euro, at 163.75 euros a tonne at 1618 GMT, edging off from Tuesday's 165.00 euro high.
The EU's wheat crop outlook remains positive despite poor weather, adding to the bearish mood because of prospects for large supplies. The cool, dry start to spring has slowed EU wheat growth but crops are generally in good shape after little winter frost damage, generating optimism for a decent harvest this summer, experts said on Wednesday.
US wheat futures in Chicago were also weaker after rallying on Tuesday, encouraged Paris prices to consolidate. "There isn't really any fresh news to feed the market so we're drifting like Chicago," a French broker said. French grain ports continued to handle a long lineup of export loadings, including large volumes of wheat for drought-hit Morocco plus rare maize shipments scheduled for South Korea and now Egypt. Cash premiums for nearby delivery in France remained firm, as strong export demand met slow selling by farmers, who were busy with field work and continuing to hold out for higher prices, brokers said. German cash market premiums in Hamburg were slightly firmer, with brisk export loadings helping to support.