PARIS: European wheat prices fell nearly 3% on Tuesday, pressured by weakness in competing Black Sea markets, while rapeseed retreated 1.5% as traders booked profit after prices touched a new all-time high on tight supplies and strong demand.

Benchmark March milling wheat on Paris-based Euronext was down 2.9% by 1615 GMT at 281.25 euros ($317.95) a tonne. It had gained 5% in the week to Monday.

“It’s nearly the end of the year. There are some adjustments being made,” a trader said.

Competitive Black Sea prices in wheat export markets depressed sentiment in Germany.

“German prices are about $10 a tonne and more higher than some Black Sea wheat which does not make a positive picture for our export sales early in the new year,” one German trader said.

“For Europe as a whole, China remains the major hope for west EU export sales as Russia continues to seek more share of the Algerian market ... China was said to have bought low-protein French wheat along with Australian milling wheat, but there will probably be no confirmation until the ships start appearing on port loading lists in France.”

Premiums in Germany were generally nominal because many market participants were on holiday.

Standard 12% protein wheat for January onwards delivery in Hamburg was offered for sale around 8 euros over Euronext March . Purchase interest was seen around 6 euros over.

In rapeseed, the front-month February contract shed more than 11 euros or 1.5% to 767.75 euros a tonne after touching a new all-time high of 791.50 euros in earlier trade.

“World output is very thin while demand is strong, notably for biofuel with the pick-up in fuel demand and restrictions on the incorporation of other vegetable oils in Europe,” a trader said.

“We are in a situation of shortage and in a shortage market, anything is possible,” he added.