EU wheat eases as slow exports hang over market

PARIS, Feb 12 (Reuters) - Euronext wheat prices slipped on Wednesday as weak French exports raised concern about burdensome stocks in the EU's top producer, encouraging a pullback from a one-month high.

March wheat BL2H5 on Paris-based Euronext was down 1.2% at 233.25 euros ($242.02) a metric ton by 1552 GMT.

The front-month contract was moving away from Tuesday's peak of 238.75 euros, its highest since January 3.

After Euronext was buoyed this month by signs of ebbing Russian competition, there was renewed focus on low French exports.

Farm office FranceAgriMer cut its forecast for French soft wheat shipments outside the European Union in 2024/25 to a new low this century.

Slow exports were maintaining large inventories in France despite the smallest harvest since the 1980s last summer.

"We're looking at big wheat stocks," one futures dealer said. "Exporters are not seeing enough demand for now."

March futures fell more sharply than deferred positions amid concerns that port silos were relatively full, dealers added.

The bearish mood on Euronext outweighed support from a drop in the euro EUR= against the dollar and firmer Chicago grain prices. GRA/

Traders were waiting to see if an import tender being held by Algeria on Wednesday would bring new sales for EU wheat, though diplomatic tensions were expected to rule out French supplies again.

“The Algerian tender provides welcome new demand in the market, but it looks like the western EU will have a tough time supplying any purchase, with Russian and other Black Sea prices still looking cheap,” one German trader said.

Traders said that 30,000 tons of Russian 11.5% milling wheat for March Black Sea shipment was offered at $240 a ton FOB on Wednesday and 30,000 tons of Russian 12.5% at $245 a ton FOB.

Ukrainian 11.5% wheat for seaport shipment was offered at $239 a ton FOB.

Concern that a case of foot-and-mouth disease in Germany last month could hit feed grain demand was easing. The agriculture ministry said Germany is relaxing some restrictions and believes measures to contain the outbreak are working.

($1 = 0.9638 euros)