Euronext wheat eases from two-week high

PARIS, Sept 19 (Reuters) - European wheat futures fell on Friday amid a lull in export demand and as some participants booked profits following a two-week high, traders said.

December wheat BL2Z5 on Euronext was down 0.7% at 191.00 euros ($224.35) per metric ton at 1549 GMT, easing back from Thursday's two-week peak of 193.25 euros.

Chicago wheat Wv1 also eased, with a firmer dollar and the absence of agriculture from initial readouts of a call between U.S. President Donald Trump and Chinese counterpart Xi Jinping weighing on U.S. market. GRA/

Since hitting contract lows in early September, Euronext futures have drawn support from steadying Russian prices and a rally in Chicago grains.

But plentiful global supply and tepid international demand remained a curb on prices.

"There is an overall expectation that the big Middle Eastern and North African importers have a purchasing requirement and we could see some big tenders issued soon," a German trader said.

"But importers appear to be still waiting for Russian prices to fall further as more Russian new crop enters the market after a slow start to sales."

In signs of swelling global supply, the International Grains Council on Thursday raised its monthly forecast for 2025/26 global wheat production while grain trade association Coceral increased its estimate of 2025 soft wheat production in the European Union and Britain to a 10-year high.

Western Australia will produce more grains and oilseeds than expected a month ago, an industry group said on Friday, underscoring a favourable harvest outlook in the southern hemisphere exporting country.

However, wheat prices in Europe remained supported by slow selling by farmers unhappy at current levels below their production costs, and by heavy short positions held by investment funds, which are wary of betting on further falls.

"It's very difficult to be bullish with supply and demand globally, but cash markets actually tick stronger," another trader said.

In western Europe, wheat export activity remained light, though barley continued to attract large shipments.

In Germany, one vessel has just sailed with 12,000 tons of German wheat for the Netherlands while a ship is set to load 55,000 tons of barley for Saudi Arabia.

In France, rain forecast from this weekend could boost soil moisture before upcoming cereal planting after a warm spell this week, though it may slow maize harvesting again.

($1 = 0.8514 euros)