PARIS, Dec 5 (Reuters) - Paris wheat futures fell on Thursday as weaker U.S. prices encouraged consolidation on the European market after an export rally had taken it to a near seven-month high the previous day.
* Chicago wheat fell for a second day to hit a one-week low as slow weekly U.S. exports added to bearish sentiment created by a much bigger-than-expected official estimate of the Canadian wheat harvest on Wednesday.
* Paris futures were also curbed by chart resistance at 211 euros, after the benchmark March milling wheat contract hit a high of 211.25 euros on Wednesday.
* On Thursday, the contract settled 1.75 euros or 0.8 percent lower at 208.00 euros a tonne.
* 'After gaining 4 percent in a week, the market is taking a break,' one Euronext dealer said. 'The 211 euro target was reached and operators think at this level it makes sense to book some profits.'
* A one-month high for the euro against the dollar, as some investors were disappointed the European Central Bank did not announce more aggressive monetary easing measures, also curbed Paris prices. A stronger euro makes grain from exporters like France and Germany more expensive overseas.
* But prices should remain well supported given vigorous export demand for European wheat, as well as the scope for industrial buyers to take advantage of any price drop to cover their needs, dealers said.
* The European Union reported 572,000 tonnes of wheat export licences this week, keeping the 28-country bloc on course for a record volume over the 2013/14 season.
* Traders said Algeria bought around 300,000 tonnes of milling wheat in a tender this week for January shipment, much more than initially reported on Wednesday.
* Traders also reported that Egyptian state buyer GASC had cancelled a purchase of 60,000 tonnes of Romanian wheat in a tender on Tuesday due to a problem with the documents submitted by the seller. GASC declined to comment.
* After French wheat missed out in Tuesday's tender to the cheaper offer of Romanian wheat, the news raised the prospect that GASC would tender again within days.
* In Morocco, private buyers booked about 500,000 tonnes of mostly French wheat in the past three weeks, traders said, as they aim to bring in cargoes when an import tariff is suspended in January.
* In another sign of strong demand for EU wheat, Iran's state grains agency GTC has bought at least 300,000 tonnes of milling wheat in the past three weeks, with German and Polish wheat among the possible origins, traders said.
* The bullish export context kept German wheat premiums stable in the face of falling international markets.
* Standard milling wheat for January delivery in Hamburg was offered for sale unchanged at 3 euros over the Paris March contract with buyers offering about 2 euros over Paris.
* 'Export optimism remains a major factor underpinning prices with the Black Sea region increasingly expected to be out of the export market,' one German trader said.
(Reporting by Valerie Parent and Gus Trompiz in Paris, and Michael Hogan in Hamburg; editing by David Evans) Keywords: MARKETS GRAIN/EUROPE
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