PARIS: European wheat prices waned on Monday, pressured by weak US markets and sentiment that last week's rise may have been overdone at a time of hefty global supplies and strong competition with cheap Black Sea wheat.
December milling wheat on Paris-based Euronext, was 1.1 percent lower by 1537 GMT to 161.50 euros a tonne in thin trade.
On the Chicago Board of Trade wheat futures were down more than 1.2 percent at $4.43-1/2 a bushel on technical selling after hitting a one-month high.
EU wheat had gained more than 4 euros a tonne last week, partly due to poor prospects in Australia which cut its wheat crop forecast to an eight-year low as dry weather hit the country's largest producing regions.
Eyes were also on Egypt where two wheat cargoes rejected by the agriculture quarantine service at the port of Safaga for containing poppy seeds will probably have to be moved for sieving, a source familiar with the matter said, dashing hopes of a quick end to the dispute.
In other news, the EU's crop monitor raised its outlook for 2017 maize and sugar beet yields for the second month in a row, saying rain helped crops in countries such as France and Germany and offset the impact of drought and heatwaves elsewhere.
German cash premiums in Hamburg were little changed, with internal market prices again sometimes higher than in export ports.
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.
"The new week is starting with the same picture of a poor export outlook in Germany following the rain-damage to Germany's crop this summer and cheaper offers on export markets from Poland and the Baltic States," one German trader said.
"Internal market prices, especially for feed wheat, are again sometimes higher than in ports because of sluggish exports."
Feed wheat in the South Oldenburg market was offered for sale above milling wheat at 171 euros a tonne for September/December delivery, with buyers offering around 169 euros.
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