The European Wheat Futures dipped on Friday, easing from a week-high. A U.S. Holiday robbed the market of its usual energy and positive harvest prospects. Slow exports also weighed down prices.

As of 1618 GMT, September wheat prices on Euronext were 0.8% lower at 195.75 Euros ($230.60 per metric ton).

Investors adjusted their short positions, and the front-month position remained almost unchanged. It had fallen to a contract-low of 192.75 euro on Tuesday but rebounded to a weekly high at 199.25 euro on Thursday.

Euronext's prices were also limited by a slight increase in the euro. The currency remained close to a three-and-a half year high in relation to the dollar, reached earlier this week.

One German trader stated that the market is still facing a combination of good crop prospect in the West EU and Black Sea.

Cheap Russian and Black Sea prices will likely win export business soon. Importers are delaying purchases because they expect prices to drop further as harvest pressure increases.

On Friday, new-crop Russian protein wheat at 11.5% was priced below $220. It cost around $217-219 per ton FOB. 12.5% cost between $224-226.

He said that the price of Ukrainian new crop feed, including delivery to North Germany/the Netherlands was quoted at 185-195 Euros per ton on Friday.

The news that the European Commission would offer Ukraine a 1.3 million ton annual wheat import quota under a revised agreement for trade was met with little response.

It was thought that the quota would reshape trade, but have limited effects on prices.

A French trader stated that the move would affect intra-EU trading, as importers from Europe will buy more goods from France and Germany than Ukraine. "But this won't affect global trade much, as Ukraine will continue to sell more goods to non-EU nations as long as they have access to the Black Sea."

The EU also proposed a barley limit of 450,000 tonnes, which corresponds to the volume of barley imported from Ukraine over the last year. A maize cap of 1,000,000 tons was also proposed, but this latter figure was deemed irrelevant, as the EU already has a zero-tariff policy on maize.

Analysts and traders remained confident about the wheat harvest in Europe, despite a recent heatwave that posed few risks for crops.

FranceAgriMer, the farm office in France, reported that 11% of soft wheat had been harvested by French farmers as of June 30. This is up from 1% one week before and above the five-year average 4%. ($1 = 0.8489 euro) (Reporting and editing by Hugh Lawson; Reporting by Gus Trompiz)

(source: Reuters)