EU wheat falls amid wider global market selloff, supply pressure

PARIS/HAMBURG, Aug 1 (Reuters) - European wheat prices fell on Friday, tracking a broader downturn across global markets, as new U.S. tariffs on dozens of trading partners, including the European Union, added to market nerves.

Benchmark September milling wheat BL2U5 on Paris-based Euronext was down 0.6% by 1505 GMT to 195.00 euros a metric ton.

French farmers had gathered 89% of this year's soft wheat crop by July 28, still running ahead of the five-year average of 78% after hot and dry weather in July helped farmers accelerate work, data from farm office FranceAgriMer showed on Friday.

In Argentina, a major wheat exporter, recent rainfall improved soil moisture reserves for the country's 2025/26 wheat crop, with nearly all of the planted area now in normal to optimal condition, the Buenos Aires Grains Exchange said on Thursday.

Meanwhile, grain consultancy Sovecon downgraded its forecast for Russia's wheat crop in 2025 to 83.3 million metric tons (mmt) from 83.6 mmt previously, due to weaker-than-expected yields in the key southern region.

Germany's wheat harvest suffered yet another day of interruption as rain again fell in many areas, increasing concern about last minute quality damage to wheat ready for cutting.

Rain damage is also feared in Poland and the Baltic region, but the picture in Sweden is better.

"Full ripening of the main wheat crop in the middle of Sweden is still about a week away anyway. The rain in the south and west has been local and spotty rather than widespread, so wheat harvesting has been able to start," a Swedish trader said.

Demand for wheat remained slack, with very few import tenders in the market as Black Sea prices remained unexpectedly firm following unusual lack of selling by Russian farmers of new crop wheat.

But traders noted some demand from Egyptian private importers for Ukrainian wheat, with an Egyptian private buyer seeking to buy about 30,000 tons of Ukrainian 11.5% protein milling wheat for August shipment at around $245 a ton c&f Egypt.