EU wheat edges lower in light trade ahead of Christmas break

PARIS, Dec 24 (Reuters) - European wheat fell slightly in thin trade on Tuesday as traders were adjusting positions ahead of the Christmas break and the results of an international tender by Algeria.

Benchmark March milling wheat BL2H5 on Paris-based Euronext, closed early ahead of Christmas, down 0.4% to 231.00 euros per metric ton. The contract had fallen to two-week lows of 226.00 euros a ton on Friday.

On the Chicago Board of Trade the most traded wheat contract Wv1 was down 0.4% to $5.37-1/2 per bushel by 1330 GMT.

Algeria's state grains agency OAIC issued an international tender to buy milling wheat from optional origins for shipment in February and March, with a deadline for submission of price offers on Tuesday.

Traders reported purchases at around $257 to $258 per ton cost and freight (c&f) included.

The size of the purchase in tonnage terms was not initially clear.

The recent fall in prices and the low level of the euro could help French wheat's competitiveness, traders said.

However, Algiers has been shunning its traditionally main supplier in recent months amid diplomatic tensions between Algiers and Paris, allowing Russian and other Black Sea region exporters to expand in the market.

Euronext will be closed on Wednesday and Thursday for Christmas.

(Reporting by Sybille de La Hamaide; editing by Jason Neely)

((Sybille.deLaHamaide@thomsonreuters.com; +336 8774 4148;))