EU wheat eases from one — month high

PARIS/HAMBURG, Oct 15 (Reuters) — Euronext wheat fell from a one-month high on Thursday, with a bounce in the euro and more Russian exports tempering concerns about war disruption to Black Sea trade, traders said. Benchmark December milling wheat on Euronext settled 0.8% lower at €246.25 ($275.92) a metric ton after the day session. It earlier equalled Wednesday's peak of €249.75, a level not previously reached since September 9, but again faced chart resistance near the psychological €250 threshold. A sharp rise in the euro, which recovered from a 17-month low against the dollar a day earlier, curbed Euronext.

FRX/ The euro's weakness and a large import purchase by Algeria spurred Euronext prices earlier in the week. "Wheat should retain underlying support from Black Sea disruption and tighter European availability," British merchant ADM Agriculture said in a note. "Nevertheless, competitive Argentine supplies and subdued US export demand constrain upside potential." Rising Russian exports through alternative Baltic Sea routes have made the market less sensitive to ongoing attacks on vessels in the Black Sea, including overnight drone strikes on two chemical tankers off Romania.

“Importers continue to take a remarkably calm view of the halt to Russian and Ukrainian Black Sea shipments, stressing the overall comfortable worldwide wheat availability,” a German trader said. “More Russian wheat is being exported from the Baltic and is offered at lower prices than the west EU and Black Sea EU.” Russian 12.5% protein wheat for November shipment through Russian Baltic ports was on Thursday quoted around $267 to $269 a ton free on board and for shipment via Baltic States ports at around $270 to $272 a ton FOB.

Traders said this was well below 12.5% Romanian at around $287 to $290 and French 11% at around $284 to $287, depending on currency and Euronext moves. The soft wheat area in the European Union could fall by about 2% next year due to rising production costs, Expana analysts said. The French government proposed including €500 million to €700 million in next year's budget, on top of €1.3 billion already pledged for this year, to help farmers cope with mounting costs and the impact of extreme weather. ($1 = 0.8925 euros) (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Hugh Lawson) ((gus.trompiz@thomsonreuters.com)