EU wheat extends gains as euro eases, Russian prices steady

PARIS, Sept 17 (Reuters) - Euronext wheat extended gains on Wednesday to a new two-week high, helped by an easing in the euro and signs that Russian prices are steadying after a recent fall.

December wheat BL2Z5 on Euronext settled 0.5% higher at 192.25 euros ($227.74) per metric ton as it rose for a sixth straight session.

The front-month position earlier reached its highest since September 2 at 193.00 euros as it continued to move away from a contract low of 188.00 euros struck earlier this month.

The euro EUR= fell back from Tuesday's four-year high against the dollar, ahead of a widely expected U.S. interest rate cut. FRX/

European export prospects were also boosted by indications that Russian competition may be easing.

“Russian export prices are stable to even slightly firmer today, with some prices up about $1, which is positive for west EU export prospects,” one German trader said.

“This seems to be both because of exchange rate factors and because Russian farmer selling of the new crop is still pretty restrained.”

Traders also say a sharp hike to Russia's wheat export tax may erode the competitiveness of the country's export prices.

Russian 12.5% protein wheat for September/October was on Wednesday around $225-$228 a ton FOB. Russian 11.5% protein wheat was around $221 to $224 a ton FOB.

Ukrainian and Romanian 11.5% wheat were about $230-$232 with French also around similar levels depending on Euronext and exchange rate moves.

In France, farm office FranceAgriMer raised its forecast for French soft wheat exports in 2025/26 after early-season shipments to Egypt and Asia, but said market sentiment remained gloomy with wheat stocks still expected at a 21-year high.

Wheat export activity in France remained focused on Morocco, with several cargoes due to load, LSEG port data showed. GRAIN/SHP/FR

Financial investors expanded further their large net short position in Euronext wheat last week, data showed.

Euronext is considering extending trading hours for its agricultural commodities futures, notably by pushing back the evening close to attract more U.S.-based investors, market sources said.

($1 = 0.8442 euros)