EU wheat stays subdued as abundant supply weighs

PARIS, Oct 8 (Reuters) - Euronext wheat again traded in a narrow range on Wednesday, with ample global supply limiting support from a falling euro and keeping futures near contract lows.

December milling wheat BL2Z5, the most-active position on Paris-based Euronext, settled 0.1% up at 188.00 euros ($218.08) a metric ton, holding close to last Wednesday's contract low of 185.00 euros.

The euro EUR= fell for a third day to reach a six-week low against the dollar, pressured by political uncertainty in France following the collapse of its latest government. FRX/

A steadying in Chicago wheat Wv1 after it neared a five-year low also lent some support to Euronext. GRA/

Traders said a partial government shutdown in the United States was contributing to subdued trading in grains by disrupting U.S. crop and export data, and raising doubts over the timing of aid promised for U.S. farmers affected by a trade dispute with China.

Rising supply in exporting countries remained a curb on wheat prices, with approaching southern hemisphere harvests set to add to competition.

"Supplies are ample for now, with fresh volumes expected soon from Australia and Argentina," Donatas Jankauskas, analyst at CM Navigator, said in a note.

European traders were watching to see if the recent fall on Euronext and for the euro would attract fresh demand.

Russian 11.5% protein November shipment wheat was on Wednesday about $226-$228 a ton FOB, about $3 more expensive than French wheat, depending on Euronext and currency moves, a German trader said.

But Romanian and Ukrainian wheat were still about $1-$2 under French levels, while Argentine wheat was quoted just under the $220 level, though with higher ocean shipping costs to North African and Middle Eastern buyers.

Increased estimates for Russian exports in September and October suggested the world's largest wheat supplier may be recovering from a sluggish start to the season.

Exporters of European Union wheat were also wrestling with slow farmer sales.

"The problem is the lack of selling by farmers in Germany and some other EU countries because of dissatisfaction with the low Euronext prices. This means it is immensely hard to get enough supplies to meet current inquiries from buyers in North Africa and West Africa," the trader said.

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

($1 = 0.8621 euros)