HAMBURG: Paris wheat futures dropped on Tuesday as traders assessed crop conditions across Europe, with moisture levels improving in the Black Sea region but drought still a concern in France and Germany.

The market was monitoring showers forecast for later this week in parched northerly grain belts in France and Germany in the hope they relieve crops after a dry, hot spell.

September milling wheat on Paris-based Euronext settled 2.25 euros, or 1.2%, down at 184.25 euros a tonne ($206.70), the lowest in about two weeks and close to a chart support level.

"On Euronext, prices may lack bullish factors this week with the return of rain, a firmer euro-dollar rate and a very large long position held by investment funds," consultancy Agritel said.

Ukraine's ProAgro consultancy on Tuesday made an upward revision to its forecast for the country's wheat crop after recent rainfall.

In France, traders are awaiting news on whether hot, dry weather in the past week hurt soft wheat crops that are already in their poorest condition for this time of year since 2011.

In exports, there was little reaction to a tender by Egypt, in which it bought 120,000 tonnes of Ukrainian wheat, with the July shipment period expected to favour Black Sea origins.

In Germany, rain is forecast this week, which would be welcome for dry crops in the north and east.

"The weather forecasts are the main focus at the moment as wheat in parts of Germany need water," one German trader said.