EU wheat holds gains on lower euro, firm Russian prices

PARIS, Sept 18 (Reuters) - European wheat futures ended flat on Thursday as a fall in the euro and more signs that Russian prices are steadying helped counter pressure from bumper global supply.

December wheat BL2Z5 on Euronext settled unchanged on the day at 192.25 euros ($226.37) per metric ton. It earlier reached another two-week high at 193.25 euros as it added to gains from each of the previous six sessions.

The front-month position has been gradually moving away from a contract low of 188.00 euros struck in early September.

The euro EUR= eased from a four-year high against the dollar as investors assessed a U.S. interest rate cut that was accompanied by less dovish than expected comments from the Federal Reserve. FRX/

European prices were also underpinned by indications that Russian competition may be easing.

“Russian export prices are showing continued firmness today,” one German trader said.

“There are no real signs of the kind of big Russian price falls importers had been expecting in September as more of Russia’s new crop enters the market.”

Russian 12.5% protein wheat for September/October on Thursday was around $225-$228 a ton FOB.

Russian 11.5% protein wheat was around $1 firmer at $223 to $225 a ton FOB. But this was still about $5-$7 cheaper than French wheat, depending on Euronext and currency moves.

Traders say a sharp hike to Russia's wheat export tax, variations in the rouble and reluctant selling by farmers are underpinning Russian prices.

Traders also reported that an Iranian purchase of Russian wheat in a tender in late August could have been much larger than previously thought, with some estimates at over 1 million tons.

Latest production estimates nonetheless underscored ample global supply.

The International Grains Council raised its monthly forecast for 2025/26 global wheat production by 8 million tons to 819 million tons.

Grain trade association Coceral, meanwhile, increased its estimate for 2025 soft wheat production in the European Union and Britain to a 10-year high.

"While technicals and seasonal trends lend some near-term support, heavy corn and wheat balances, firm competition, and currency dynamics are keeping rallies capped despite bouts of strength in Chicago," British merchant ADM Agriculture said.

Chicago wheat Wv1 eased on Thursday from a seven-week high a day earlier, curbed by the bounce in the dollar. GRA/

($1 = 0.8493 euros)