EU wheat steadies on export glimmer

HAMBURG/PARIS, Feb 25 (Reuters) - Benchmark wheat futures on Euronext ended slightly higher on Tuesday as signs that EU wheat was becoming more competitive for export encouraged prices to come off a four-week low.

May wheat BL2K5, the most-active contract on the Paris-based Euronext exchange, settled 0.1% up at 231.75 euros ($243.38) a metric ton.

It earlier fell to 230.50 euros, its lowest since January 28 and below a previous four-week low from Monday.

Deferred positions ended down slightly.

Euronext has been pressured this week by weakness in Chicago grain futures amid easing global weather concerns and renewed uncertainty over U.S. tariff policy. GRA/

While Chicago wheat Wv1 fell further on Tuesday, Euronext found buying interest as traders saw scope for EU wheat to attract demand while limited Russian supplies become more expensive.

"There is a bit of hope that Euronext has done its job of falling enough to generate new export competitiveness in the face of cheap Black Sea competition," one German trader said.

"EU sales currently focus on internal EU market business and some sales to Morocco. But Russian prices are firming this week as the Russian government's moves to slow shipments are having an impact."

Traders said Russian 11.5% protein wheat was on Tuesday around $243 to $245 a ton FOB for March/April shipment, very close to west EU levels.

Russian 12.5% protein wheat was around $246 to $248 a ton FOB, about the same as EU Baltic region prices.

European Union soft wheat exports so far this season have reached 13.65 million metric tons, down 36% from a year earlier, official data showed on Tuesday.

EU exports have been curbed this season by Russian-led competition and a poor harvest in top EU producer France.

Traders said Algeria may have booked around 150,000 metric tons of wheat in an international tender on Tuesday limited to two smaller ports.

($1 = 0.9522 euros)