December milling wheat on the Paris-based Euronext market settled 1 euro, or 0.6 percent, lower at 170.25 euros, trading close to a contract low of 169.25 euros.
Chicago wheat dropped by more than 1 percent, pressured by a drier weather outlook that could accelerate harvesting in the United States.
Analysts have cut estimates of this year's cereal production in the European Union due to dry, cold weather this spring. The European Commission on Thursday became the latest forecaster to cut its EU outlook.
But traders said losses were not enough to upset a well-supplied global market while rain was stabilising crop conditions in Europe.
"Showers are forecast for the coming days and they should be beneficial for crops," a French cash broker said. "The question is whether this is going to reassure farmers about the harvest and spark selling, which for now remains very slow."
The euro eased against the dollar but remained within range of a 6-1/2 month high touched last week. That reduced the export competitiveness of western European wheat against cheaper Black Sea grain, as shown by Wednesday's purchase of Russian and Romanian wheat by Egypt.
"Black Sea origins are much more competitive be it in wheat or barley," a trader said. "The market is going to have to adjust to the competition. Either Matif (Euronext) or the physical premiums are going to have to go down."
Weekly EU data showed the bloc's 2016/17 soft wheat exports had reached 22.1 million tonnes by May 30, with a modest 110,000 tonnes shipped in the past week.
In Germany, cash milling wheat premiums in Hamburg were little changed, with continued demand from animal feed makers providing support in the face of slack export demand.
German wheat export shipments were modest, with loadings in Hamburg this week including 45,000 tonnes for Nigeria and around 12,000 tonnes for Namibia.
"Ship loadings of old business are still taking place but new sales are scarce because of the euro's strength and I expect export loading activity to quieten down in the second half of June," a German trader said.
Standard wheat with 12 percent protein content for June delivery in Hamburg was offered for sale unchanged at 1 euro over the Paris December contract. Buyers were seeking level Paris.
Feed wheat for June onwards delivery in Germany's South Oldenburg feed wheat market was again quoted about 8-9 euros above Hamburg milling wheat.