Euronext wheat steadies after latest lows with export demand in focus

PARIS, May 13 (Reuters) - Euronext wheat ended little changed on Tuesday, recovering from earlier contract lows in step with Chicago futures as traders watched to see if the recent price slide would stir more demand from importers.

September milling wheat BL2U5, the most active position on Paris-based Euronext, settled unchanged on the day at 204.50 euros a metric ton. It earlier fell to 201.00 euros, slightly below a previous contract low of 201.75 euros from Friday but again held above the psychological 200 euro threshold.

September is now the front-month position on Euronext after Monday's expiry of the May contract at a settlement price of 199.00 euros.

Euronext was pressured by a recovery in the euro EUR= against the dollar and further losses for Chicago wheat Wv1 after the U.S. government estimated U.S. wheat supplies and crop conditions above market expectations.

But a bounce in Chicago prices during U.S. trading helped Euronext to steady by the close. GRA/

The latest price lows fuelled speculation that competitively priced European and U.S. wheat may attract fresh export demand, with talk that U.S. wheat might be in contention for a rare sale to Algeria in a tender on Wednesday.

French wheat is not expected be in the running, despite attractive prices, as a diplomatic stand-off between Paris and Algiers continued this week.

Traders say the rift since last year led Algeria to tacitly exclude French wheat and trading companies from recent purchase tenders, which Algerian state grains agency has denied.

There has been speculation in recent weeks about possible French sales to Egypt, but traders said the market would need stronger indications of an upturn in demand in the face of ample global supplies.

"Importers seem comfortable they can currently get good volumes at similar prices from the west EU or Black Sea if they need to buy, so they can sit and wait for lower prices,” one trader said.

Traders said U.S. soft red winter for May/June U.S. Gulf shipment was about the world's cheapest high-volume origin at $215-$220 a ton FOB. This was about $10 a ton cheaper than French/Black Sea wheat but with U.S. wheat finding surprisingly thin purchase interest.

European Union soft wheat exports so far this season had reached 18.3 million tons, down 33% from a year ago, official data showed.