Benchmark December milling wheat on the Paris-based Euronext exchange was down 0.50 euro or 0.2% at 174.75 euros ($191.35) a tonne at 1556 GMT. The contract had earlier on Wednesday hit 176.25 euros, its highest since August 9. The lowest offer presented at a new international purchase tender for wheat from Egyptian state buyer GASC was $199.15 per tonne FOB for 60,000 tonnes of French wheat for the November 5-15 shipment period, traders said.
Even with additional ocean shipping costs, the offer for French wheat remained a possible winner but was facing heavy competition from Russian and Ukrainian supplies, they said.
"Prospects of Egypt buying more French wheat is supporting the market but it's only one cargo and on the other side Chicago is going the other direction," a trader said.
A 2.3% fall in US wheat contract in Chicago in early Wednesday trade weighed on sentiment in Paris.
In Germany, cash premiums in Hamburg continued at a stable level with new export demand for German wheat underpinning.
Standard bread wheat with 12% protein for October delivery in Hamburg was offered for sale unchanged at 2.0 euros under Paris December. Buyers were seeking at least 3.0 euros under Paris. "Russian wheat has gradually been getting more expensive and importers are starting to look beyond the Black Sea region," one German trader said. "We are seeing some of the first export purchases of German wheat for some time which is supportive."
At least two shiploads of German wheat have recently been sold for export, one for shipment in November and the other in November/December.
Buyers in South Africa or western Africa were spoken of as buyers although Libya was also suspected.
"The rise in Paris benchmark prices to 7-week highs this week has also generated more willingness to sell among German farmers," the trader added. "This has made it easier to get supplies together for export shipments."