UPDATE 1-Paris wheat hits six-week low on export gloom, Trump action awaited
Adds closing price in paragraph two, expectations Trump tariffs not immediate
HAMBURG/PARIS, Jan 20 (Reuters) - Euronext wheat eased on Monday to a new six-week low, pressured by euro strength against the dollar as investors reacted to indications Donald Trump may not immediately impose trade sanctions as incoming U.S. president.
Benchmark March milling wheat BL2H5 on the Paris-based Euronext closed down 0.2% at 226.25 euros ($234.76) per metric ton.
It earlier touched its lowest since Dec. 5 at 225.00 euros, slightly below a previous six-week low from Thursday, but found chart support around that level.
"Markets are waiting to see what the new President Donald Trump will do on trade and sanctions," one German trader said.
The euro EUR= surged against a weaker dollar after a report Trump will not immediately impose tariffs following his inauguration. FRX/
Trading was thin, with a holiday closure for U.S. markets depriving impetus.
"The euro is weighing, with Matif (Euronext) losing a couple of euros from its intraday high," a futures dealer said.
"The corn market is still technically bullish, but we could be near the end of the rally with Brazilian planting ahead."
A stronger euro makes European grain more expensive overseas, and its rise on Monday came against a backdrop of slow EU wheat exports.
"The bearish background for EU wheat exports remains as the week starts, with Russian prices low and thin demand, with hardly any international purchase tenders issued," the German trader said. GRA/TEND
Russian wheat export prices declined last week.
The IKAR consultancy said Russian 12.5% protein wheat for February delivery was $234 a ton, down $3 on the week. Sovecon estimated prices between $237 and $240 a ton.
"Despite all the Russian government's efforts to reduce exports, Russian prices are not rising," the trader added.
Russian government efforts to slow exports to cool domestic prices include export taxes, minimum export prices and export quotas.
(Reporting by Michael Hogan and Gus Trompiz. Editing by Jan Harvey and Mark Potter)
((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))
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