PARIS (Reuters) -Euronext wheat fell steeply on Friday, a day after prices hit a record high, as traders grappled with the potential consequences of Russia's invasion of fellow grain exporter Ukraine.
Benchmark May wheat on Euronext slipped back below the psychological 300-euro threshold, settling down 25.25 euros, or 8%, at 289.75 euros ($325.71) a tonne.
On Thursday, the contract rose as much as 16% to set an all-time high for the Paris-based market at 341.75 euros, before settling up 7% at 315.00 euros.
Thursday's session also marked a record for daily volumes in Euronext's wheat futures, with 158,655 lots traded.
Gains on Thursday reflected initial panic at Russia's military action. Euronext also attracted extra volatility as it does not have a daily variation limit, unlike Chicago wheat, which was capped at its 50-cent limit. [GRA/]
Friday's reversal was fuelled by profit-taking and a shift back to equities among investors, dealers said.
The grain market was also weighing the impact of the war in Ukraine on trade flows, with talk that exporters had booked several hundred thousand tonnes of Romanian wheat and corn, as well as some French corn and wheat, to replace Ukrainian supplies.
"Depending on the urgency of the needs at the destination, there will be switches to other origins," Philippe Heusele, international head at French grain industry group Intercereales, said.
"If the volumes that still exist in Ukraine are released onto the market it will bring calm to the market, but the big unknown is there," he added.
Russian missiles pounded Kyiv on Friday as fighting was reported in the outskirts of the Ukrainian capital, while the country's ports remained closed to shipping for a second day.
In Germany, expectations about new sales supported premiums.
Standard 12% protein wheat for March onward delivery in Hamburg was offered for sale at about 11 euros over Euronext May.
In maize, June futures on Euronext settled down 2.4% at 268.25 euros a tonne, with losses limited by signs of demand for French maize to replace Ukrainian supplies.
In rapeseed, May futures ended down 4.8% at 727.00 euros a tonne, retreating from Thursday's near-record high of 835.75 euros.
($1 = 0.8896 euros)