PARIS- Euronext wheat dropped on Thursday to a one-week low, tracking a pullback in U.S. and Russian prices as a demand-fuelled rally in wheat markets faltered.
Front-month December milling wheat, the most active contract on Paris-based Euronext, was down 1.00 euro, or 0.5%, at 193.00 euros ($224.86) a tonne at 1420 GMT.
The contract earlier fell to a one-week low of 191.50 euros as a chart gap created at the open spurred selling, before it pared losses as Chicago wheat Wv1 steadied in U.S. trading.
A two-month low for the euro against the dollar also helped limit the drop on Euronext.
The Euronext spot contract had on Tuesday reached a five-month high of 195.75 euros, as purchases by importing countries boosted Russian prices.
"All the main wheat markets are correcting a little bit after the effervescence of the past week," a futures dealer said.
Export activity in France remained light after the summer's small harvest, with the exception of a continuing flow of shipments to China.
In Poland, prices rose sharply in the past week supported by strong export demand while a weaker trend in the zloty raised hopes for more sales.
Polish 12.5% protein wheat prices rose by 50 zloty over the last week to around 835 zloty a tonne (184.2 euros) for September/October delivery to ports.
"We are seeing that export demand is picking up from third countries like Algeria, Saudi Arabia, Cuba and even Egypt, which bought one cargo of Polish wheat for first time in around five years last week," one Polish trader said.
Export prices in the Baltic countries had been very low after good harvests but they have also risen following heavy exports, making Poland look more competitive.
Among loadings in Poland, one vessel is currently loading about 60,000 tonnes of Polish milling wheat in Gdynia for Saudi Arabia.
($1 = 0.8583 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg. Editing by Jane Merriman) ((email@example.com; +33 1 49 49 52 18; Reuters Messaging: firstname.lastname@example.org))