EU wheat eases from two-week top, rapeseed extends rebound

PARIS, March 20 (Reuters) - Euronext wheat edged lower on Thursday after notching a two-week high as traders assessed export demand and negotiations to end the war in Ukraine.

Front-month May milling wheat BL2K5, the most active position on Euronext, settled 0.2% down at 226.75 euros ($245.84) per metric ton.

The contract earlier extended gains from Wednesday to reach its highest level since March 3 at 228.25 euros.

Euronext drew support from the euro EUR=-, which fell further back from a five-month high against the dollar, and news on Wednesday that Turkey is loosening curbs on wheat imports.

But a fall in Chicago, where traders reacted to weak old-crop export sales, encouraged Euronext to consolidate. GRA/

There was also caution before U.S.-Russian talks on Monday that are due to cover shipping security in the Black Sea, as part of efforts to secure a ceasefire in Russia's war with Ukraine.

"Continued global geopolitical risks will likely weigh on the market, with the Russia-Ukraine ceasefire negotiations ... all against an equally volatile backdrop of trade tensions," British merchant ADM Agriculture Ltd said in a note.

Reaction to Turkey's relaxation of its import restrictions was tempered by a sharp drop in the country's currency after the arrest of the main opposition leader.

"This means you have to expect that Turkish mills will delay purchases at least for the next few weeks in the hope that Turkey's currency will stabilise," one German trader said.

Western European wheat was also seen facing continuing competition from Black Sea suppliers, despite a slowdown in Russian exports.

Traders said Russian 12.5% protein wheat on Thursday was priced around $251-$254 a ton FOB for April/May shipment and Romanian around $254-$256.

Russian 11.5% wheat was around $244-$246, Ukrainian wheat also was quoted at about these levels, with Romanian about $5 a ton higher.

French and other West European Union 11.5% wheat was priced around $7-$8 a ton higher than Russian/Ukrainian depending on Euronext levels, another trader said.

In France, Morocco remained the main destination for wheat exports outside the EU, with six vessels due to load this week, according to LSEG data. GRAIN/SHP/FR

In rapeseed, May futures COMK5 on Euronext settled 1.2% up at 492.00 euros per ton.

The contract was extending a technical rebound from a six-month low earlier this week fueled by tariff concerns over Canadian rapeseed, dealers said.

($1 = 0.9223 euros)