EU wheat eases as US-China trade excitement fades

PARIS, Oct 30 (Reuters) - Euronext wheat edged down on Thursday, moving further back from a two-month high at the start of the week, as traders reacted cautiously to agricultural commitments made in U.S.-Chinese trade talks and shifted their focus back to ample supply.

December milling wheat BL2Z5, the most active position on Euronext's Paris-based futures, was 0.3% lower at 191.50 euros ($223.33) a metric ton by 1712 GMT, easing for a third straight session.

The latest drop filled a chart gap created during Monday's rally when the benchmark hit its highest since September 1 at 193.50 euros.

A fall in the euro EUR= against the dollar helped limit losses on Euronext.

Chicago Wv1 fell more sharply, pressured by the dollar's strength and the absence of wheat from statements following Thursday's highly anticipated meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping. GRA/

As part of steps to reduce tensions between the countries, China agreed to purchase 12 million metric tons of U.S. soybeans for the current season and committed to buying 25 million tons annually for the next three years, U.S. Treasury Secretary Scott Bessent said.

However, traders cautioned that the exact timeframe remained unclear and the announcements were yet to translate into large-scale purchases, while other crops were not mentioned except for sorghum, which Trump referenced without any details.

"Without firm (Chinese) commitments, rallies may struggle for traction, though strong speculative flows and tight farmer selling could sustain price swings in the near term," British merchant ADM Agriculture said of grain prices.

The onset of wheat harvesting in Argentina and Australia, which are forecast to bring in bumper crops, and improved planting weather in Europe and the Black Sea region was sustaining expectations of abundant supply in major export zones.

In France, traders were watching to see if competitively priced local wheat could attract more export demand, including from Egypt.

Several shipments of wheat that had been delayed for weeks at Egyptian ports due to payment issues have now been cleared to unload after the problems were resolved, Egypt's state grain-buyer told Reuters on Thursday.

($1 = 0.8575 euros)