Wheat regained some lost ground, retaking the E200-a-tonne mark in Paris, helped by uncertainties on Ukrainian exports and a warning of a fall of one-third in Western Australian wheat production.

Paris wheat for November stood at E201.50 a tonne at 15:15 GMT, down 1.8% on the day but E3.50 a tonne above a morning low which had raised concerns that prices were poised for a further leg down.

"E200 is seen as a bit of a psychological marker by some. Staying below it for long might not be good news," a UK trader told Agrimoney.com.

Chicago wheat for September stood 4.5 cents higher $6.81 ½ a bushel, leaving London wheat the worst performer, down 3.4% for November delivery at £143.00 a tonne, its lowest this month.

'Little available moisture'

While traders cited continuing pressure on prices from funds selling up, and farmer selling, the prospect of a weak grain harvest in Western Australia, Australia's top grain state, was helping keep bulls' hopes alive.

Drought is expected to cut by 33% to 5.5m tonnes, the state's wheat harvest, the Western Australia Grains Industry Association said.

While some farms had received some rain last week, "soil moisture assessment shows that most areas have little, if any, available moisture to sustain plant growth", the association said.

"Should the current pattern of irregular rain with lengthy fine spells continue, it is likely that production estimates will be revised downward further in September," the group added, in a report the day after the Australian Oilseeds Federation also warned over the state's plight.

Decision delay 

In Ukraine, the government postponed until next Wednesday a decision on whether to limit wheat exports to 1.5m tonnes, and barley shipments to 1.0m tonnes, exports in the last four months of the year.

While neighbouring Russia has already banned shipments because of the drought damage to its crops, Ukraine has suffered less severe weather setbacks and is also, as a member of the World Trade Organisation, more limited in its options for restrictions.

"As a WTO member, Ukraine is not entitled to halt exports.  At the moment, only grain export quotas may be discussed," Roman Bezsmertnyi, the country's ambassador to Belarus, said on Wednesday.

Trucks queue

Even without curbs, merchants are reporting export difficulties, with terminals at Illitchevsk, Kherson and Odessa ports no longer buying grains, according to the Association of Ukrainian Grain Farmers.

"Nibulon terminal is the only place to sell grain," said Agritel, the Paris-based consultancy, which also runs a Kiev office.

"Nearly 1,000 trucks are waiting outside the Nibulon terminal in Nikolayev. According to drivers, it is the only terminal where grain is bought at market prices."

The UK trader said: "There is still a bit of uncertainty around, and the sniff of that is still enough to keep many people interested at the moment."

In America, broker US Commodities said: "Wheat, after a $2-a-bushel drop, is nearing value."