Euronext wheat hovers near lows

PARIS, Oct 6 (Reuters) - European wheat futures were little changed near contract lows on Monday as rising global supply hung over the market.

A drop in the euro against the dollar EUR=, as the collapse of France's newly named government deepened the country's political crisis, lent some support to Euronext. FRX/

However, export sentiment was tempered by signs that Russian exports were picking up and growing expectations of stiff competition from coming southern hemisphere harvests.

December milling wheat BL2Z5 on Paris-based Euronext settled unchanged from Friday's close at 187.75 euros ($219.74) a metric ton, near last Wednesday's contract low of 185 euros.

Deferred positions on Euronext ended slightly lower.

Chicago wheat Wv1 eased back towards contract lows. GRA/

Chicago markets lacked direction as they faced uncertainty over U.S. government statistics, with a partial federal shutdown disrupting some data publications, along with caution before an expected announcement of aid for soybean farmers.

U.S. President Donald Trump has flagged the aid to compensate growers affected by China's shunning of new-crop U.S. soybeans during its trade battle with Washington.

Saudi Arabia bought 455,000 tons of wheat for shipment in December and January, the country's General Food Security Authority (GFSA) said on Monday, adding to a wave of import demand since recent price lows. GRA/TEND

But traders said offers suggested Black Sea origins including Russian wheat would cover most of the optional-origin sales.

In Russia, analysts have increased their estimates for September wheat exports, though prices are steady.

Increased projections for the coming crops in Argentina and Australia have reinforced expectations of bumper global output.

The United Nations' Food and Agriculture Organization on Friday increased its outlook for 2025 global cereal output, joining other forecasters in predicting a record world wheat crop.

Improving planting conditions in Europe and the Black Sea zone were adding to supply pressure.

In Russia, showers in the week ahead should help parched soils, while in France drier weather should help wheat sowing to get going after weekend rain.

($1 = 0.8544 euros)