European wheat futures ended little changed on Wednesday after earlier hitting another high since July as wheat markets remained gripped by weather risks in major exporting countries worldwide. Benchmark December milling wheat the most active contract on Paris-based Euronext, settled 0.25 euro, or 0.1 percent, higher at 182.50 euros ($213.21) a tonne.
It earlier rose to 183.25 euros, setting a near 10-month high for the second day in a row. Chicago wheat futures see-sawed, turning lower in overnight trading before resuming Tuesday's rally as dry weather in the US Plains and in other major wheat-producing countries like Russia and Australia fuelled volatility.
"I think the weather is bringing that risk back into the market during spring, which is a key yield development period," Charles Clack, a commodity analyst with Rabobank, said. "Another factor behind the move on commodity markets is funds, which have been particularly active."
The European market was also being supported by the weakness of the euro, with Europe's single currency slipping to a new six-month low against the dollar below $1.17 after business data pointed to a slowdown in the euro zone. Price gains on Euronext were capped by favourable crop conditions in western Europe, and the need to remain competitive on export markets against Black Sea origins.
Traders were also awaiting full results of a tender by Algeria, the main overseas buyer of French wheat. Algerian state grain buyer OAIC made a purchase on Wednesday after extending bidding from Tuesday, paying $228-$228.50 a tonne, cost and freight, for an unconfirmed volume, traders said.
Euronext said it had delayed the publication of weekly data on the positions held by participants in its commodity derivatives markets including wheat, due to a technical issue. In Germany, standard bread wheat with 12 percent protein content for May delivery in Hamburg was offered for sale at 11 euros under Paris December against 8 euros under Paris on Tuesday.
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