PARIS: European wheat futures were little changed in thin trade on Friday as traders assessed whether a fund-driven rally in wheat markets this week signalled a rebound from harvest season lows.
December milling wheat on Paris-based Euronext settled unchanged on the day at 163.25 euros ($195) a tonne.
Euronext continued to draw support from Chicago wheat, which rose for a fourth session amid short covering by investment funds, although a firmer euro kept Paris prices in check.
Over the week, the Euronext December contract was up more than 2 percent.
"There is a speculative aspect to the trend, with funds that have been buying quite a lot of wheat this week in Chicago," one futures dealer said.
"When you look at charts for the last few years, this is also the period when prices bottom out."
Wheat prices often fall during the summer harvest season in the northern hemisphere as new-crop supplies roll in, and an expected record Russian harvest has reinforced supply pressure.
However, traders said a steadying in Russian prices, slow selling by European farmers at current levels and uncertainty over harvest prospects in the southern hemisphere were shifting the focus away from large global inventories.
French port data showed a series of wheat cargoes were due to load for Algeria, confirming strong early-season sales of French wheat in its main overseas market.
But traders said overall export demand outside the European Union remained thin as Black Sea origins like Russian and Ukrainian wheat were more competitive.
Within the EU, France has captured some extra demand from Germany after its neighbour suffered rain damage to its wheat crop.
The rain-hit quality has also shifted the focus of Germany's market to domestic trade.
"Domestic prices such as in the Mittellandkanal region (in central Germany) and in feed markets such as South Oldenburg are higher than in export ports," one German trader said.
"The combination of the poor quality of this summer's harvest, especially in north Germany, and the firmer trend in the euro is likely to keep German wheat exports depressed in coming months."
Standard bread wheat with 12 percent protein content was offered for sale unchanged at 1 euro over the Paris December contract for September delivery in Hamburg. Buyers were offering level Paris.
Feed wheat in the South Oldenburg market was quoted above milling wheat at around 171 euros a tonne for September/December delivery.
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