EU wheat rises with Chicago as Black Sea doubts persist

PARIS/HAMBURG, Aug 20 (Reuters) - Euronext wheat edged up on Wednesday, with benchmark futures recovering from a contract low, as Chicago prices rebounded while doubts over Russian exports and a rapid end to the war in Ukraine tempered expectations of large supplies.

December wheat BL2Z5, the most-active position on Paris-based Euronext, was up 0.4% at 194.50 euros ($226.81) a ton at 1521 GMT, coming off a contract low at 193.25 euros a ton from Tuesday.

Chicago wheat Wv1 added about 1%. GRA/

Rising estimates of Russia's harvest and hopes that talks under the aegis of U.S. President Donald Trump will end the war in Ukraine had weighed on wheat markets this week, reinforcing expectations of ample global supply.

But investors turned more cautious on Wednesday about chances for a resolution of the conflict between Russia and Ukraine, both major grain exporters through the Black Sea.

"I do think that numerous statements about a Putin-Zelensky summit are too optimistic and doubt that it will happen in the near future," Andrey Sizov, head of consultancy Sovecon, said.

Sovecon, which raised slightly its Russian wheat harvest forecast, also noted that it will take time to deliver wheat to Russian ports from inland regions with good harvest volumes.

A slow start to Russia's export campaign has contributed to a run of French export sales, including to Egypt, Tunisia and Thailand. GRAIN/SHP/FR

Traders are watching to see when export competition from Russian wheat may increase.

Russian 12.5% protein wheat for September shipment was quoted moderately weaker at around $237-$241 a ton FOB on Wednesday, but with buyers seeking much lower prices around $236 a ton, traders said. Russian 11.5% protein wheat was around $233-$236.

"Russian prices are dipping slightly with more farmer selling but not the heavy falls in prices normally expected in Russia after the harvest," a German trader said, adding that some see sharper falls occurring later this month.

In Germany, dry, sunny weather enabled farmers to make rapid progress in the final stages of the wheat harvest, with traders expecting work to be generally finished this week.

A big crop is expected, although up to 30% could be feed quality after repeated summer rain.

Uncertainty over quality was making farmers cautious about selling, though the large harvest volume was expected to produce sufficient supply of milling wheat for export and domestic markets, traders said.

In France, updated results from a harvest quality survey showed the share of soft wheat with at least 11% protein remained below last year's level but test weights continued to be much higher, farm office FranceAgriMer said.

($1 = 0.8576 euros)