European wheat futures were little changed on Monday, taking their cue from a pause in the Chicago market's rally which was driven by concerns over severe cold in the US and eastern European wheat belts. Wheat futures have also been supported so far this year by expectations that commodity funds will add wheat during annual index reweighting.
European futures touched a two-month high, but technical resistance on price charts and a backdrop of record global supplies then capped gains. March milling wheat on the Paris-based Euronext exchange was down 0.25 euro or 0.2 percent at 171.00 euros a tonne at 1621 GMT.
It earlier rose to 172 euros, a level not reached since October 31, but stalled at the level. "Those chatting about weather are more fishing for a reason, fundamentals haven't shifted that much yet," one futures dealer said. "There's been short-covering and the usual managed money inflow at this time of year." Chicago wheat also consolidated after touching its highest in more than six weeks, with lower-than-expected weekly US export inspections helping to cool sentiment. A rise in the euro against the dollar also curbed Euronext prices. Investors were also awaiting direction from US Department of Agriculture (USDA) crop forecasts on Thursday, further rebalancing of portfolios by commodity investment funds and also a Wednesday news conference by US President-elect Donald Trump that may yield more details on policy.