PARIS - Euronext wheat futures fell on Tuesday, pulling away from multi-month highs hit a day earlier as jitters over rain damage to French crops eased and traders awaited a clearer picture on harvest prospects.
September milling wheat on Paris-based Euronext was down 1.75 euros or 1.0 percent at 169.50 euros a metric ton by 1554 GMT.
The contract had rallied on Monday to 174.00 euros, its highest since early February and also the highest front-month price since the end of December.
Market participants had been covering short positions after flooding in northern France that is threatening to hurt wheat yields and quality in some of the country's biggest grain belts.
After a drier start to the week, traders were monitoring storms moving across France from the northeast that could bring more heavy rain.
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"The market is consolidating today," a futures dealer said. "People got worried about theweather, some say they've never see conditions like this. But there is also a lot of noise in the market."
Maize futures on Euronext remained firm against a backdrop of strong demand for French maize as supplies run low in rival exporting countries.
August maize rose as high as 185.00 euros a metric ton, a new nine-month high for spot prices. It had become the new front-month reference on Tuesday after the expiry on Monday of June futures.
German cash market premiums in Hamburg marked down to compensate for the overnight rise in Paris, with buyers not expecting serious crop damage from rain in the last week.
Standard wheat with 12 percent protein content for June delivery was offered for sale at 11.5 euros under the Paris December contract against 11 euros on Monday. Buyers were seeking 13.5 euros under Paris.
In Poland, prices rose the last week, supported by higher Paris futures and a busy Polish export programme.
Exporters raised purchase prices by 10 zlotys on the week to 675-685 zlotys a metric ton (155.1-157.4 euros) for 12.5 percent protein wheat for June delivery.
Millers also increased offer prices for 12.5 percent protein wheat for June delivery by 10 zlotys to 640-670 zlotys a metric ton depending on region.
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"Exports are busy with a ship in Gdynia to load 65,000 metric tons of wheat this week," a Polish trader said.
"One vessel left Gdansk for Dakar in Senegal with 16,000 metric tons and another sailed with 45,000 metric tons of wheat for El Dekheila in Egypt and a third ship with 36,000 metric tons of wheat sailed for Mozambique."
In Stettin, one ship loaded 25,000 metric tons for South Africa and another vessel is currently loading 65,000 metric tons for an undisclosed destination, he said.
