EU wheat pressured by Chicago and euro

PARIS, March 11 (Reuters) - Euronext wheat fell towards a six-month low on Tuesday, pressured by further strength in the euro and weakness in Chicago futures.

May wheat BL2K5 settled 1.1% down at 221.25 euros ($241.83) a metric ton, not far from Friday's six-month low of 219.25 euros.

May is now the front-month position on Euronext after Monday's expiry of March futures, which ended at 209.25 euros.

A latest four-month high for the euro EUR= against the dollar weighed on Euronext by making Western European grain more expensive overseas. FRX/

Chicago wheat Wv1 gave back some of its gains of the previous day, with losses fuelled by an increase to forecast U.S. stocks in a monthly U.S. Department of Agriculture report. GRA/

The USDA also raised its projections for stocks worldwide and in major exporting countries, "which offers nothing bullish for the market", CM Navigator analyst Donatas Jankauskas said in a note.

Grain traders were also monitoring U.S. tariff policy, which has unsettled financial markets because of fears that it will curb economic growth. MKTS/GLOB

The European wheat market was 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.

Weekly European Union data on grain exports and imports was not published on Tuesday owing to technical issues, the European Commission said.

($1 = 0.9149 euros)