Euronext wheat bounces off lows as traders weigh exports

PARIS, Oct 1 (Reuters) - European wheat futures ended higher on Wednesday, recovering from latest contract lows as signs of renewed export demand stemmed pressure from rising global supply.

December milling wheat BL2Z5, the most-active position on Paris-based Euronext, settled 0.8% up at 187.75 euros ($220.01) a metric ton.

It earlier fell to 185.00 euros, the latest in a series of contract lows, before regaining ground.

The price lows had spurred new export demand for French wheat. Traders cited talk that at least two 30,000-ton vessels had been sold for Morocco and that French wheat was competitive again in Egypt.

"French wheat is pricing competitively in key export markets," one trader said. "The problem this year is that there's a production surplus in all the major exporting countries."

Widely followed U.S. Department of Agriculture grain data on Tuesday underscored ample supply, with larger than expected estimates of U.S. quarterly wheat stocks and 2025 U.S. wheat production.

Chicago wheat Wv1 extended losses on Wednesday to reach contract lows. GRA/

A sharp increase to a Ukrainian government forecast for winter wheat planting for next year's harvest further reinforced the prospect of abundant supply.

But traders are monitoring planting in top wheat exporter Russia after adverse weather hampered fieldwork.

Financial investors expanded their net short position in Euronext wheat last week, data published by the exchange on Wednesday showed.

($1 = 0.8534 euros)