EU wheat slips further after Black Sea shipping deal announced

PARIS, March 25 (Reuters) - Euronext wheat fell further on Tuesday as the U.S. announced agreements with Russia and Ukraine to protect maritime trade in the Black Sea, raising the prospect of increased export competition, traders said.

May wheat BL2K5 on Euronext settled 0.9% down at 220.25 euros ($238.02) a metric ton, after reaching its lowest price since March 12 at 219.75 euros.

Washington, which is seeking an end to the war in Ukraine, said it had reached separate agreements with Kyiv and Moscow to ensure safe navigation in the Black Sea and halt attacks by the two countries on each other's energy facilities.

While Black Sea grain export volumes have recovered from disruption at the start of the war, traders said improved security and a U.S. commitment to facilitate market access for Russian agricultural exports could stiffen competition.

Moscow said the agreement would require the lifting of some Western financial sanctions.

"The finance aspects could perhaps help Russian exports. But it's a lot of announcements and not that much new when Black Sea trade is already working pretty much like before the war," one futures dealer said.

Deferred positions on Euronext fell slightly more than May futures. Traders said any boost to Russian exports is more likely next season, with shipments for the end of the current season slowed by a rally in the rouble.

Losses on Euronext were moderate, with traders awaiting more details and prices having fallen during the negotiations on Monday.

"Euronext gave up 5 euros between yesterday and today, so it's pretty much priced in," another dealer said.

Chicago wheat Wv1 also eased. GRA/

Export sentiment in Western Europe remained cautious.

"The export-competitiveness of west EU is looking better and if the exchange rate plays ball, maybe some new export sales are possible," one German trader said.

"Unfortunately, the end of the Ramadan period, with holidays next week in Muslim countries, means demand is likely to be thin."

Russian, Romanian and Argentine 11.5% protein wheat for April/May delivery all traded around $244-$247 a ton Free on Board, about $2-$3 under the west European Union depending on Euronext, traders said.

But Ukrainian wheat was about $3-$4 below Russian 11.5% protein wheat and U.S. soft red winter was even cheaper at around $233-$237 a ton FOB.

EU soft wheat exports this season have reached 15.46 million metric tons, down 35% on a year-on-year basis, data showed.

($1 = 0.9253 euros)