The price of European wheat fell on Thursday, after reaching a record high in three months this week. Traders analyzed a series of reports that cast doubts over Black Sea export supplies.

The December wheat price on Paris' Euronext closed 0.6% lower, at 232.25 euro ($256.06), consolidating below the high of 235.00 euro set on Wednesday.

The market was unsettled by the drought in Russia that affected wheat sowing, the possibility of export restrictions from Moscow, and concerns over the escalation of war in Ukraine and Middle East. This led investment funds to reduce the short position they held in Euronext Wheat last week.

Brokers said that chart resistance and farmer sales contributed to the consolidation of Thursday's market.

Rain chances were monitored by market participants in the parched winter wheat regions (Russia)

In a note, British merchant Frontier Agriculture stated that "some rain is predicted (in southern Russia), but it may be too late since the winter wheat drilling period normally ends in early November."

"In parts of Western Europe, the weather is opposite. There's a lot of rain which reminds us about last fall's difficult conditions for winter wheat drilling."

The wettest September for 25 years in France has made some farmland wet again. This is after the country harvested its lowest wheat crop in forty years this summer following repeated heavy rain.

After a dry week, showers are expected in France next week.

As reported on Wednesday, traders were also interested in the details of an agreement Egypt had made to import Black Sea Wheat.

Some traders were sceptical about the potential delivery of 3 million tons over several months, given the dwindling availability in the Black Sea Zone and the possibility of Russian export quotas.

Market participants digested another report that Egypt plans to reduce wheat imports through the addition of corn or sorghum in order to subsidise bread.

FranceAgriMer, the farm office, published customs data showing that soft wheat exports to countries outside of the European Union fell from 708,000 tons in July last year to 496,000 tonnes this month.

The wheat shipments in France have slowed down sharply since the harvest was poor.

(source: Reuters)