EU wheat tracks Chicago lower with USDA report in focus

PARIS, March 11 (Reuters) - European wheat futures edged lower on Tuesday, curbed by further strength in the euro and weakness in Chicago as traders awaited a U.S. government crop report for an initial projection of the impact from incoming tariffs.

May wheat BL2K5 was down 0.2% at 223.25 euros ($242.18) a metric ton by 1529 GMT, not far from Friday's six-month low of 219.25 euros.

The euro EUR= rose to a four-month high against the dollar, making Western European grain more expensive overseas. FRX/

Chicago wheat Wv1 gave back some of its gains of the previous day in cautious trading before the U.S. Department of Agriculture's monthly world crop report. GRA/

The USDA has said it will consider trade policies in making its forecasts.

Fears that U.S. tariffs will hurt economic growth have unsettled financial markets while grain investors worry that U.S. grain exports could be hampered by retaliatory measures. MKTS/GLOB

The European wheat market was also looking ahead to an import tender from Algeria on Wednesday to assess export competition.

“The new purchase tender from Algeria this week is very welcome new demand. Unfortunately, Russian prices have fallen and there is still the political tension between Algeria and France, which could hinder a French sale,” one German trader said.

Traders said that Russian 11.5% protein wheat was around $239-$241 a ton FOB on Tuesday for April shipment, about $5-$6 cheaper than equivalent French wheat.

Ukrainian wheat was at about the same level as Russian and Romanian grain and about the same as French wheat.

U.S. and Argentine wheat were considered to be in contention for the Algerian tender, though firming Chicago prices had pushed U.S. Gulf and Argentine FOB prices about $2-$4 over Russian prices as the week started, traders said.