OREANDA-NEWS. February 06, 2015. European Union wheat futures were mixed on Thursday as the market weighed up brisk short-term export demand against news that Euronext will launch a higher-quality wheat contract, a move that could push down current new-crop prices.

The front-month March milling wheat contract on the Paris-based Euronext market settled 0.50 euros or 0.3 percent higher at 187.00 euros a tonne.

It earlier hit a one-week high of 189.50 euros, supported by news of a record weekly volume of EU soft wheat export licences at 1.67 million tonnes.

December, the most active contract for the 2015 crop, settled down 0.50 euros or 0.3 percent at 186.25 euros, after earlier falling as much as 2.50 euros.

New-crop prices were pressured by Euronext's announcement of a new wheat contract to be launched in March that will offer higher-quality specifications that had been due to be adopted only in 2017. The prospect of an alternative contract for the next harvest raised the prospect the market would discount prices on Euronext's current futures that have less strict quality specifications.

"The spreads between different positions have moved around a lot since this morning, partly due to Euronext's announcement," one futures dealer said. "New-crop prices have started to drop off a little."

Despite the strong EU data, export sentiment in France was tempered by news that Egypt is considering a special tender for US wheat, a move traders say reflects its wish to be less reliant on France, which has dominated recent wheat sales to the world's top importer. German cash wheat premiums in Hamburg eased, although good export prospects were keeping a lid on falls.

Standard wheat with 12 percent protein content, for delivery in Hamburg in March, was offered for sale at a premium of 6.5 euros over the Paris March contract, down from 7 euros on Wednesday. Buyers were offering 5.5 euros.

"There is some selling pressure from some parties holding long positions today, perhaps partly because of some belief that prices in the Saudi tender purchase on Monday were too low for German wheat to be supplied and that Poland will be a more likely origin for Saudi," one German trader said.

"Still supportive is the large export programme developing in Germany following the weaker euro and the export restrictions from Russia and Ukraine."