EU wheat extends gains with Chicago as exports monitored

PARIS, April 1 (Reuters) - Euronext wheat rose for a third session on Tuesday, tracking strength in Chicago while European traders assessed chances for new export demand.

May wheat BL2K5, the most active position on the Paris-based Euronext, settled 0.6% up at 221.50 euros ($239.11) a metric ton.

The contract earlier reached a one-week high at 222.75 euros as it recovered further from Friday's one-year low of 215.00 euros.

Chicago wheat Wv1 also extended a rebound from multi-month lows last week, supported by U.S. Department of Agriculture planting forecasts on Monday that pegged the 2025 U.S. wheat area below a range of analyst estimates.

In Europe, an easing in the euro EUR= against the dollar helped underpin Euronext.

"The USDA was bullish for wheat yesterday and Matif (Euronext) is keeping its momentum," a futures dealer said.

Last week's price lows have raised expectations of an upturn in export demand, with traders citing talk that French wheat has been booked by importers in Morocco and possibly in Egypt too.

French FOB export prices remained about $5-$7 a ton cheaper than Russian wheat depending on Euronext levels, according to traders.

Russian 11.5% protein wheat for April/May delivery was around $244-$247 a ton FOB. Russian 12.5% protein wheat was around $250-$254 a ton FOB, with German 12.5% wheat about $3-$4 cheaper than Russian.

Romanian wheat was about $2-$3 more expensive than French wheat but Ukrainian wheat was offered about $2-$4 cheaper than French.

"There is hope the west EU can make some more export sales as our price advantage over the Black Sea is holding, apart from against Ukraine," one German trader said.

"France looks better positioned to take advantage of this window than Germany," the trader said, adding that farmers' reluctance to sell at current prices and some higher inland prices were curbing German export supply.

European Union soft wheat exports so far this season are down 36% from a year ago, though incomplete data has amplified the lag, official figures showed.

Traders were continuing to monitor a dry spell in Western Europe seen as a risk for crops as they emerge from winter, though showers forecast in Eastern Europe were expected to alleviate dryness there.

One impact of the dry weather is low water levels preventing vessels from sailing fully loaded on the Rhine River in Germany, with surcharges added to the usual freight rates.

($1 = 0.9264 euros)