EU wheat hits six-week low as export worries persist

PARIS, Jan 16 (Reuters) - Euronext wheat dropped for a third day in a row on Thursday to reach a six-week low as concern over weak export demand lingered, traders said.

Benchmark March milling wheat BL2H5 on the Paris-based Euronext was down 1.0% at 226.00 euros ($233.03) per metric ton by 1724 GMT.

The contract earlier reached its lowest since Dec. 5 at 225.25 euros, with the opening of another downside chart gap adding to the selling impetus.

Lower Chicago wheat prices Wv1, as rain prospects in Argentina weighed on U.S. grain futures, also curbed Euronext. GRA/

Wednesday's estimates from FranceAgriMer, in which the farm office maintained its forecast for the lowest French soft wheat exports outside the European Union this century, kept attention on slow export activity in Europe.

"The west EU is facing a real struggle to make sales against the dual challenges of cheap competitors and low demand," a German trader said.

Aside from some fresh interest from Moroccan importers this month, EU exporters were facing a lull in international demand. GRA/TEND

Cheaper Black Sea supplies continued to provide competition despite a slowing in exports from the region.

Russian 12.5% protein wheat for January/February shipment was quoted at around $238-$240 a ton free on board (FOB) on Thursday. The prices have hardly changed this week and are well below the west EU.

Russian 11.5% was around $233-$235, Romanian 11.5% at $230-$232, while Ukrainian 11.5% was reportedly trading in the mid-$230s.

An influx of large supplies from Argentina's and Australia's harvests on export markets was also limiting export opportunities for EU wheat.

"Russian wheat exports are beginning to slow, as expected, but there remains little sign of increased EU demand," British merchant ADM Agriculture said in a note.

"Short-term fundamentals remain negative as increased southern hemisphere supplies will replace lower Black Sea exports," it said.

($1 = 0.9698 euros)

(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Vijay Kishore)

((gus.trompiz@thomsonreuters.com))