Paris wheat futures fell on Thursday in step with Chicago as both markets retreated from one-year highs, as traders assessed demand prospects in a US-Chinese trade agreement and the risk that transport strikes could curb French grain exports. Benchmark March milling wheat on the Paris-based Euronext exchange settled 2.25 euros, or 1.2%, lower at 193.00 euros ($214.87) a tonne.
The contract had climbed on Wednesday to 196.25 euros, its highest level since August 2018 and a highest spot price since last February. Wheat markets have been buoyed by brisk international demand, uncertainty over Russia's export policy and rising physical prices in France as strikes over pension reform caused logistical backlogs.
But doubts over the size of potential Chinese imports of US crops under a first-stage trade deal signed with Washington on Wednesday encouraged Chicago wheat to fall back.
In France, the recent run-up in prices prompted farmers to step up selling and buyers to baulk at paying recent levels, traders said. There was also concern that high prices and logistical snags caused by train strikes and port stoppages were starting to curb French export sales.
"The market climbed too high," a French broker said. "You've got people who are going to load export shipments in Germany instead. It looks like we'll have more port strikes next week."
German traders said some exports for 11% and 11.5% protein wheat had been switched from France to Germany, including for shipment to Morocco.
"The question now is whether French exporters will be compelled to transfer Algerian shipments to German loadings," one German trader said.
"If the traffic jams of ships continue to build up in France over the weekend we could see more transfers of French business to other countries pretty quickly."
However, other traders said current loadings reflected previously arranged sales and that switching from French to other European origins was more a risk going forward.