EU wheat gives back short-covering gains

PARIS, Aug 5 (Reuters) - Euronext wheat futures fell on Tuesday, giving back short-covering gains from the previous session, pressured by losses in Chicago and across financial markets.

September milling wheat BL2U5 on Paris-based Euronext was down 1.7% at 194 euros ($224.69) a metric ton by 1615 GMT, approaching a contract low of 192.75 euros, hit in early July.

December wheat BL2Z5 set a new contract low of 199.50 euros.

Chicago wheat Wv1 fell back towards a five-year low while worries over U.S. economic data weighed on wider markets. MKTS/GLOB

"There is global selling; we are only seeing sellers today," one dealer said.

Some traders said hopes of demand for French wheat amid tight early season availability in the Black Sea region were being tempered by signs that prices in top exporter Russia were starting to ease.

There were expectations that some export business could shift to France this summer, with continuing talk that several vessels could load French wheat for Thailand.

Market talk was that one or two shipments of Romanian wheat destined for Thailand were also being transferred to the northern French port of Rouen. Thai importers generally refuse wheat from war-hit Ukraine despite cheap prices.

“Romanian prices are high, along with other Black Sea exporters generally,” a German trader said. “France and other countries that gathered the bulk of their wheat harvests before rain in recent weeks look in a good position to gain new export sales.”

Romanian and Bulgarian 11.5% protein wheat for September shipment was around $235 to $240 a ton FOB, traders said. French wheat was about $1 cheaper, depending on Euronext and currency moves and with better supplies available.

Russian 11.5% protein wheat was around $235 to $236 a ton FOB, with talk that exporters were seeking new crop from farmers in central Russia, given restrained selling by south Russian farmers close to Black Sea ports.

Rain disruption to harvesting in northern Europe was also raising the possibility of export demand shifting towards France. Sunny, dry weather is forecast from Wednesday into next week, which could improve progress with harvesting, though more rain is expected in the Baltic States, traders said.

European Union soft wheat exports so far in the 2025/26 season were down 58% from a year ago, European Commission data showed. However, a longstanding problem with incomplete French figures has worsened, with no export data at all for the EU's top producer so far this season.

($1 = 0.8634 euros)