Euronext wheat futures edged lower on Thursday, curbed by weakness in Chicago and uncertainty created by news that France's top export market Algeria plans to reduce its wheat imports. Benchmark December milling wheat on the Paris-based Euronext exchange was down 0.75 euro or 0.4% at 179.25 euros ($198.38) a tonne by 1657 GMT.
It held in a consolidation zone below Tuesday's three-week high of 180.50 euros.
Chicago wheat also eased after reaching a four-week peak earlier in the session.
Algeria's government announced it would cap soft wheat imports at 4 million tonnes a year, down sharply from about 6 million currently.
The move, which followed steps this year to tackle corruption in the country's subsidised bread system, weighed on Euronext in morning trade, dealers said.
But selling pressure was moderate as the market awaited more details on the plan while also factoring in separate news of a wheat purchase by Algeria expected to be mostly sourced from France.
"People don't really believe the target given Algeria's big import needs," one futures dealer said of the import cap.
"The announcement was also vague on the timing." Traders said Algerian grains agency OAIC had bought around about 500,000 tonnes of optional-origin milling wheat in an international tender that closed on Wednesday, paying about $223-$224 a tonne, cost and freight.
Most of the volume was expected to be sourced from France for shipment in January. Argentine wheat, often a competitor to French wheat in Algeria at the turn of the calendar year, was not seen claiming a large share.
The tender required December shipment for South American supplies, a period seen as awkward for Argentine supplies as the harvest would still be in progress and with a more interventionist Argentine government set to enter office.
Physical premiums on the French wheat market broadly held on to recent gains, supported by the Algerian tender purchase as well as generally slow selling by farmers.
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