Euronext wheat fell on Wednesday in step with Chicago, retreating from a seven-month high, as rain forecast for dry US and Russian wheat belts eased crop concerns and shifted attention back to ample global supplies. Activity was light, with traders awaiting direction from Thursday's world crop report from the US Department of Agriculture (USDA), which will include the USDA's first full supply-and-demand outlook for the 2018/19 season.
The European market was also winding down before a public holiday on Thursday in several countries including France and Germany, which will keep some participants away for the rest of the week.
Benchmark December milling wheat on the Paris-based Euronext exchange settled 2.0 euros, or 1.1 percent, lower at a one-week low of 176.25 euros ($208.93) a tonne.
The Paris market was easing back from a seven-month peak of 178.75 euros touched on Friday and again on Tuesday.
Chicago wheat futures fell more than 1 percent as forecasts calling for showers in the week ahead tempered concern about drought-reduced winter wheat yields in the southern US Plains after a slight improvement in national crop ratings last week.
Forecasts calling for some rain in Russia in the coming days also curbed weather worries.
The European market remained underpinned by weakness in the euro, which touched a new 2018 low against the dollar.
Weekly data published by Euronext showed financial investors cut their net short position in the exchange's milling wheat futures and options for a second consecutive week.
In Germany, cash market premiums in Hamburg were slightly firmer as dealers adjusted positions ahead of Thursday's USDA report.
Standard bread wheat with 12 percent protein content for May delivery in Hamburg was offered for sale up 0.5 euro at 4.5 euros over Paris May. "Some participants were preparing for the USDA crop estimates which will be announced when markets are closed here," one German trader said.
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