Euronext wheat edges up with euro support

PARIS, July 9 (Reuters) - Euronext wheat ticked higher on Wednesday as an easing in the euro and limited crop sales by farmers helped futures hold above recent contract lows linked to good harvest prospects and weak export demand.

September wheat BL2U5 on Euronext settled 0.5% up at 196.75 euros ($230.30) per metric ton. On Monday, the front-month position had equalled a contract low of 192.75 euros from last week.

With investors already holding large short positions in Euronext wheat and farmers reluctant to sell at current prices, there was little impetus to drop further, traders said.

"The market has stopped falling except when the euro-dollar rate weighs," a French trader said. "With Matif (Euronext) below 200 euros, European farmers have turned off the tap in selling."

Financial investors extended their net short position in Euronext wheat last week, data showed on Wednesday.

In Russia, reluctant selling by farmers and a disappointing start to harvesting were also supporting the wheat market by pushing up prices in the world's biggest wheat-exporting country, according to traders.

However, broadly favourable harvest prospects in the Northern Hemisphere and tepid export demand hung over the market.

"Markets are very exchange-rate sensitive, with harvests underway and big crops expected from the Black Sea, although Russia's progress is still sluggish and not yet generating supply pressure," one German trader said.

"Prices in the big Black Sea exporters are very close to each other but still below the west EU."

Traders said Ukrainian 11.5% protein wheat was cheapest for August shipment at around $218 to $222 a ton FOB, Russian and Romanian were both around $222 to $225 a ton, around $4 to $5 cheaper than French depending on Euronext and exchange rate moves.

Germany's wheat harvest has started in some areas, but rain this week may delay a more widespread start to field work by a week or two, traders said.

"The main danger is continued heavy rain which is not in the forecast, so optimism continues of a decent wheat harvest in Germany. Barley harvesting is finishing with good yields and good quality," another trader said.

In France, cereal shipments from Rouen port, the country's main grain export hub, fell 40% in 2024/25 following a poor harvest, the port's operator said.

($1 = 0.8543 euros)