PARIS: European wheat waned on Wednesday, still pressured by a strong euro hampering competitiveness on world markets and weakness on the US market.
December milling wheat on Paris-based Euronext was down 0.3 percent by 1642 GMT at 159.25 euros a tonne. Options on the December contract close on Wednesday evening.
March was down 0.5 percent at 163.50 euros a tonne.
The euro, which touched a three-week high on Wednesday, has risen in recent days as investors grow optimistic about the single currency's outlook, with growing doubts over the prospects for the proposed US tax plan also underpinning gains.
Market activity was muted, with many international operators at a conference in Geneva.
Brokers noted that the French port premium, which had returned to positive territory as farmers refrained from selling, was retreating again because of a lack of demand.
In maize, French consultancy ODA estimated the French just completed harvest, including humid grains, at 14.1 million tonnes. That would leave a surplus exportable to other European Union states of 5.5 million tonnes, which it said is feasible in light of the poor Italian and Spanish grain crops.
The farm ministry forecast the harvest at 13.1 million tonnes and maize growers gave an estimate of 13.9 million tonnes.
German cash premiums in Hamburg were little changed, with the strengthening euro darkening Germany's export prospects.
Milling wheat continued to be sold for animal feed, with the feed industry again offering higher prices than flour mills.
Standard bread wheat with 12 percent protein content was offered for sale unchanged at 3 euros over the Paris December contract for November delivery in Hamburg. Buyers were offering 2.5 euros over.
Feed wheat in Germany's South Oldenburg market was again quoted above milling wheat, offered for sale at 175 euros a tonne for November/December delivery, with buyers offering around 174 euros.
In Poland, export prices rose on expectations that part of Saudi Arabia's last wheat tender will be sourced in Poland and because of weak farmer sales at current low prices.
"There is hope that at least one consignment of the Saudi purchase will be sourced in Poland," one Polish trader said. "Export loadings in Polish ports generally are also becoming more active after a slow period."
Saudi Arabian state agency SAGO on Oct. 30 purchased 484,000 tonnes of wheat in eight consignments of between 55,000 and 63,000 tonnes.
Polish export prices for 12.5 percent protein wheat of the same type bought in the Saudi tender rose by 10 zlotys a tonne in the past week to 685-695 zlotys (161.2-163.6 euros) for November delivery to ports.
Polish internal market wheat prices rose partly on strong demand from Poland's animal feed industry, which is also offering prices above milling wheat.
Flour mills raised their purchase offers for 12.5 percent protein wheat by 10-15 zlotys in the past week to 670-710 zlotys a tonne for November delivery. But Polish feed makers were offering to buy November wheat at 660-695 zlotys a tonne.
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