Euronext wheat edges up as euro slips

PARIS, July 17 (Reuters) - European wheat futures ticked up on Thursday with support from a lower euro, though weak export prospects and supply pressure from advancing Northern Hemisphere harvests capped prices, traders said.

September wheat BL2U5, the most-active position on Euronext's Paris-based wheat futures market, settled 0.5% up at 199.50 euros ($231.32) a metric ton, but remained near a contract low of 192.75 euros struck in early July.

"With harvest peaking and trade flows sluggish, any sustained rally likely depends on geopolitical shifts or significant weather disruptions," British merchant ADM Agriculture said in a note.

The euro EUR= fell to a three-week low against the dollar, giving up day-earlier gains as investors digested U.S. President Donald Trump's denial of reports he was planning to fire Federal Reserve Chair Jerome Powell. FRX/

The weaker euro, which makes European grain cheaper overseas, helped underpin Euronext while the dollar's bounce pushed Chicago wheat Wv1 lower. GRA/

However, export sentiment remained downbeat, with western European traders seeing the slow arrival of Russia's new crop only offering brief respite from stiff export competition.

"The debate continues about when Russian farmers will start selling new-crop wheat in greater volumes," one German trader said.

"Russian export prices are only moderately firmer, mainly for higher protein wheat. The latest harvest forecasts are still for a large Russian crop and big Russian export flows are still anticipated in July."

Traders said Russian and other Black Sea origins remained cheaper than French supplies.

Russian 11.5% protein wheat for August shipment was quoted at about $226-$228 a ton FOB, around $6 below French depending on Euronext and euro moves, while Romanian was about $2 above Russian at around $229-$231.

Russian 12.5% protein wheat was over the $230 level at $231-$236 a ton, up about $5 this week.

($1 = 0.8624 euros)