EU wheat higher as euro slide, short-covering support

PARIS, Oct 9 (Reuters) - Euronext wheat rose on Thursday as investors covered short positions after recent price lows while export sentiment was boosted by a fresh slide for the euro and signs of importer demand, traders said.

December wheat BL2Z5 on Euronext settled 1.3% up at 190.50 euros ($220.22) a metric ton. It earlier reached its highest in almost two weeks at 190.75 euros as it moved away from last week's contract low of 185.00 euros.

December led gains on Euronext, with traders citing covering of short positions concentrated on the front-month position, as well as spot export demand in physical markets.

Chicago wheat Wv1 rose after approaching a five-year low on Wednesday. GRA/

News of a Russian attack on port facilities in the Odesa region of Ukraine may have contributed to short-covering, traders said.

The latest drop for the euro EUR=, which hit a two-month low against the dollar amid concern over France's political crisis, lent additional support to Euronext. FRX/

“With the weaker euro, perhaps we could see some more export sales moved to the west EU from the Black Sea," a German trader said.

Tunisia issued on Thursday a tender seeking 100,000 tons of wheat, with bidding on Friday, according to traders. GRA/TEND

Russian 11.5% protein wheat for November shipment was on Thursday firm at $226-$228 a ton FOB, about $4 more expensive than French wheat depending on Euronext and currency moves, while Romanian and Ukrainian wheat were around the same levels as French, the trader said.

Argentine wheat was substantially cheaper at around $220, he added.

News that Egypt's state buyer had booked wheat from France and several Black Sea countries in recent weeks, according to sources, underscored demand for French wheat.

There was talk that Egypt may have booked around 100,000 tons of French wheat in these purchases.

Brisk shipments of French wheat, notably to Morocco, may have pushed this season's European Union exports above the year-earlier level, contrary to a lag shown by incomplete EU official data.

"This paints a more promising outlook for the EU market and is the reason for nearby price strength for physical wheat," British merchant Frontier Agriculture said in a note.

Ample global supply nonetheless remained a curb on the market.

The Rosario grains exchange on Wednesday raised its estimate for Argentina's upcoming harvest to a record-equalling 23 million tons.

($1 = 0.8651 euros)