Euronext Wheat prices fell Wednesday, in line with Chicago. A grain market rally sparked by Chinese purchases U.S. Soybeans faded as wheat traders shifted their focus back to the ample global supply.

The most active contract, March wheat on the Paris Euronext exchange, fell 1.4% to 193.25 euro ($222.95) at 1703 GMT after hitting its highest price in almost two weeks, 196.50 euro.

After a week-high of 192.00 euro, December wheat was down 0.5% at 189.75 after becoming less active due to the expiration of options on the front-month.

Chicago wheat fell more than 1% on the U.S. market, retreating from the 4-1/2-month high reached on Tuesday. Chicago soybeans rose to a 17 month high in this week, as China increased purchases of U.S. bean following a truce on trade between Beijing and Washington.

A futures trader stated that the move up in wheat had been overdone. There is still plenty of wheat available - even if the Black Sea supply has been exhausted, there's also Argentina, Australia, and other places. Ukraine's deputy minister of economy said on Wednesday, underlining the abundance of wheat available in the country. This is due to the higher harvests and slower shipments during the first season.

The German wheat market is a low seller, with farmers more interested in rapeseed or barley at a more attractive price.

One German trader stated that it was difficult to gather enough wheat for export sales. Low prices for Argentine wheat's new crop also create competition, especially on African markets. Black Sea prices are close to EU levels, but the Black Sea is still receiving interest, particularly Ukraine.

A buyer from Sudan wanted up to 70,000 tonnes of Ukrainian wheat with 11.5% protein at $260-265 per ton, cost and freight included. (c&f), for shipment in January. Meanwhile, a buyer from Libya was looking for around 30,000 tones of Ukrainian wheat with 12.5% protein at $251-253 per ton for shipment in December.

Jordan received no bids in an auction for 120,000 tons on feed barley held Wednesday. The data released by the exchange on Wednesday showed that financial investors increased their net short positions in Euronext Wheat last week.

(source: Reuters)