EU wheat slips again in tariff upheaval

PARIS, April 4 (Reuters) - Euronext wheat futures slipped further on Friday as a Chinese riposte to sweeping U.S. tariffs deepened a selloff on financial markets, though export hopes helped limit losses on Euronext.

May wheat BL2K5 on Euronext was down 0.2% at 220.50 euros ($242.09) a metric ton by 1444 GMT.

Chicago wheat Wv1 fell around 2%, tracking a sharp fall for U.S. soybeans that were seen as much more exposed to Chinese tariffs than wheat. GRA/

"There could be ricochet effects on trade, which might even be supportive for European grain prices, but in the meantime there is such panic in the financial world that markets have no choice but to fall," Arthur Portier, senior consultant at Argus, said.

One concern was that countertariffs from other Asian countries could impact U.S. wheat sales, raising the possibility of U.S. wheat being diverted into European export markets in the Middle East and Africa, traders said.

An easing in the euro EUR= from Thursday's six-month high against the dollar lent some support to Euronext while traders continued to see short-term export opportunities for Western European wheat. FRX/

There was ongoing market talk that some French wheat has been sold to Egypt for nearby shipment, though traders still awaited confirmation.

"French wheat is still looking in contention for export sales with Russian wheat more expensive than French and Ukrainian wheat looking cheap as the week ends," a German trader said.

Ukrainian 11.5% protein wheat was on Friday around $244-$248, just under or about the same as French prices depending on Euronext moves. Russian and Romanian 11.5% wheat were both seen at $249-$252, around $2 above French depending on Euronext.

French wheat was also attracting demand within the European Union as feed wheat, with merchants looking to clear large stocks in port silos ahead of this summer's harvest, traders added.

New-crop prices BL2U5 on Euronext fell slightly more, partly reflecting improved crop conditions in France and other major Northern Hemisphere crop belts.

Ratings of soft wheat in France showed that 76% of the crop was in good or excellent condition by March 31, up from 74% a week earlier and above a four-year low of 65% a year ago, data from farm office FranceAgriMer showed.

Rapeseed futures on Euronext were pressured by the losses in rival oilseed soybeans. May rapeseed COMK5 was 0.9% lower at 512.50 euros a ton.

($1 = 0.9108 euros)