European wheat prices ended a 13-session winning streak on Wednesday as renewed worries about Europe's economic and debt situation ushered in what many market players saw as an overdue downside correction. By 1300 GMT, the benchmark Euronext March contract was 0.9 percent lower at 197.50 euros a tonne, down from the new 3-1/2 month high of 203.50 euros a tonne set on Tuesday.
Wheat jumped nearly 17 percent over the past three weeks as concerns mounted about hot, dry weather hurting corn output in Argentina, the No 2 exporter of the grain. Crop weather in the South American agriculture powerhouse continued to lend support to grain prices, with European traders also starting to consider the impact of unusually warm temperatures in Europe on the crop.
"We are not surprised by this correction after the excessive movement of yesterday," said Gautier Le Molgat, analyst at agri-consultancy Agritel, who sees a key support level for March wheat at 193-194 euros. In Chicago, CBOT March corn resisted an earlier consolidation attempt, gaining 0.2 percent at $6.59-3/4 a bushel, but wheat, which has rallied on the back of strengthening corn values since mid-December, dipped after touching its highest since September 21 on Tuesday.
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