European wheat futures were weaker on Wednesday in technically driven trade as prices pulled back from seven-week highs hit on Monday. Most active December milling wheat on the Paris-based Euronext exchange unofficially closed down 1.25 euros or 0.7 percent at 162.50 euros per tonne, easing further from Monday's high of 164.50 euros. "There is a weaker trend in the absence of new fundamental drivers and with technical considerations prevailing," a futures dealer said.
Dealers cited a technical impetus to move into a chart gap between 161.25 and 162 euros that were created during the recent rally when wheat markets were buoyed by export demand. CME Group's December EU wheat contract was down 0.25 euro or 0.1 percent at 169.50 euros a tonne at 1630 GMT, while CME's March wheat contract was unchanged at 172.50 euros after earlier rising to 173.50 euros, a high since the launch of CME's futures on September 12.
Domestic demand in France was supporting the premium for CME's futures, which are based on inland delivery, over Euronext prices that are structured around port delivery, traders said. France, normally the European Union's biggest wheat exporter, again saw unusual import flows after a poor harvest this summer. A vessel with 13,200 tonnes of high-protein wheat from Lithuania is due to arrive at the south-western port of Bayonne on Thursday for a local feed maker, port sources said. "This deal is extremely rare for this region and industry, and illustrates the unusual nature of the season which is going to bring unprecedented import flows depending on opportunities," a French trader said. A poor maize (corn) harvest was also triggering imports with the northern port of Dunkirk due to see a vessel arrive on Wednesday with 33,000 tonnes of maize from Bulgaria.