Euornext wheat slips as world supply weighs

PARIS, Oct 15 (Reuters) - Euronext wheat futures ticked lower on Wednesday as Chicago prices held around a five-year low and abundant global supply hung over the market.

December wheat BL2Z5 on Euronext's Paris-based market settled 0.5% lower at 190.00 euros ($221.07) a metric ton.

Euronext had risen on Tuesday, helped by a bounce in Chicago wheat Wv1 from a five-year low, but came under pressure again on Wednesday as the U.S. benchmark fell back. GRA/

A rebound in the euro EUR= from Tuesday's two-month low against the dollar also curbed Euronext by tempering hopes of export demand for western European wheat.

“It is hard to see Tuesday’s firmness in Euronext continuing in view of the big supplies available in world markets with a large new crop also on the way from Argentina in coming weeks presenting more competition to EU wheat in African markets,” one German trader said.

Argentine 11.5% protein wheat export prices are around $8 cheaper than the western EU at $216-$219 a ton free on board (FOB) for November shipment and about $10 cheaper than Black Sea wheat, though Argentina has higher ocean shipping costs to the major North African and Middle Eastern markets, traders said.

In France, farm office FranceAgriMer cut sharply its outlook for soft wheat stocks at the end of 2025/26 as it increased expected exports within the European Union and estimated more wheat would be used on farms than previously thought.

French stocks are now projected at a two-year high compared with a 21-year peak forecast previously.

Favourable planting weather for next year's crop was adding to overall supply pressure in France and across Europe.

After a dry spell since last week helped farmers advance field work, showers next week are expected to bring some beneficial soil moisture in France, traders said.

Activity on Euronext and physical markets in Europe was moderate, with many participants attending an annual gathering of the European grain trade in Berlin.

Grain markets also lacked clear direction due to an ongoing U.S. government shutdown, which has disrupted closely watched crop data, and uncertainty over prospects for a resolution to a U.S-China trade standoff.

($1 = 0.8595 euros)