Firm euro weighs on EU wheat again as Trump-Putin call monitored

PARIS, March 18 (Reuters) - Benchmark wheat prices on Euronext fell on Tuesday, curbed by further strength in the euro and a subdued trend in Chicago as traders monitored U.S.-Russian talks aimed at moving towards a ceasefire in Ukraine.

Front-month May milling wheat BL2K5 on Euronext settled 1.0% down at 222.25 euros ($243.30) a metric ton.

The euro EUR= rose to a new five-month peak against the dollar in chopping trading as investors reacted to the German parliament's approval of a massive spending programme and awaited the outcome of the call between U.S. President Donald Trump and Russian counterpart Vladimir Putin. FRX/

The euro's strength has made it harder for European Union wheat to take advantage of short-term export opportunities as Russian shipments slow.

"It's hard for Matif (Euronext) to cope with a euro like that, when the export demand out there is very near-term," a futures dealer said.

Even with Russian exports slowing, EU wheat is still facing competition from Ukraine as well as relatively cheap Argentine and U.S. supplies, according to traders.

Deferred positions on Euronext ended flat to marginally higher, with concerns about crop conditions in the United States and the Black Sea region underpinning prices.

Chicago wheat Wv1 edged down after a day-earlier rally fuelled by severe weather in the U.S. Plains. GRA/

In readouts from the U.S.-Russia discussions, the two sides said they agreed to a proposed 30-day halt to attacks on energy infrastructure in the Ukraine conflict, while also agreeing to technical talks on a maritime ceasefire in the Black Sea.

"If there is progress on the Trump peace efforts in Ukraine, this could also open the door for more Russian exports if sanctions on Russia are relaxed," a German trader said.

While traders generally see moves to end to the conflict as potentially bearish for grain prices, as it could ease Black Sea trade, they also view a possible rally in the rouble as hurting the competitiveness of Russian wheat.

($1 = 0.9135 euros)