* A lower trend in US wheat futures in Chicago on Wednesday also weighed.
* Europe's benchmark wheat, Paris' November contract was down 1.50 euro or 0.7 percent at 206.25 euros by 1609 GMT after hitting a new 2-month high of 210.00 euros in early Wednesday trade, a price level considered as a major resistance.
* European prices gained initial impetus from the higher close on Tuesday by US wheat in Chicago.
* "The market took off early following Chicago because we are (being) driven by the US and the feed complex," one trader said. "We hit the 209-210 euros resistance, did not break it and thus fell back."
* Some traders said that although EU wheat prices continued to be supported by concerns about rain causing quality loss in Germany, the damage was mostly priced in at this stage.
GERMANY
* In the EU's second-largest wheat producer Germany, prices were little changed but holding well above Paris levels because of the continued worry about rain damage to Germany's harvest.
* Standard new crop bread-quality wheat for September and later delivery in Hamburg was offered for sale flat at 222 euros a tonne with buyers at around 220 euros.
* "Prices are remaining at a stable level today regardless of what Paris is doing," one German trader said. "In the north there is still continued worry about the harvest."
* Rain has fallen repeatedly in past weeks as German farmers struggle to harvest their wheat, raising fears a larger than expected proportion of Germany's wheat crop this year will be animal feed standard.
* "We need sunny, hot weather to finish the harvest but this is still not on the cards," another trader said.
* A mixture of sunny weather with showers is forecast for much of north Germany from Wednesday to Sunday night.
* Some observers estimate that 20 percent of Germany's wheat crop is still unharvested, largely in the key north German export regions. Harvesting would normally now be finishing. But harvesting in south and central Germany is largely finished with relatively good results, traders said.
* Farmers remained reserved sellers in the north as they were concerned they would not be able to deliver high quality, traders said.
ITALY
* Bread and feed quality wheat prices rose in Italy, a major grain importer in Europe, driven by concerns about tight new crop supplies and rising prices of wheat imported from Russia and Ukraine, traders said.
* Feed wheat from Russia and Ukraine was offered at 214 euros a tonne in the northern Italian port of Ravenna, up from 207 euros on Friday, while Hungarian feed wheat of much lower quality was offered at 220 euros a tonne, including delivery charges, one broker said.
* "The quality of Russian wheat is so good that some mills can add it to their milling mix," the broker said.
* Italian maize, which plunged 47 euros to 229-230 euros a tonne at a key weekly session of Milan's grain bourse on Tuesday, is likely to fall further at a weekly session of Bologna's cereals exchange on Thursday on expectations of bigger new crop, dealers said.
* Maize harvesting is gathering pace in northern Italy, with first trucks of early maize offered at 215-218 euros a tonne, traders said. The bulk of harvesting comes in September but the current spell of dry and hot weather is likely to bring it forward, they said.
Copyright Reuters, 2011