EU wheat holds firm at two-month peak on euro weakness

PARIS, Nov 4 (Reuters) - Euronext wheat edged to its highest level since September 1 and slightly above Monday's previous two-month peak, helped by euro weakness and speculation of Chinese demand for U.S. wheat.

December milling wheat BL2Z5, the most active contract on Euronext's Paris-based futures, settled 0.5% up at 194.75 euros ($227.12) a metric ton, with traders also citing short-covering by participants with big short positions in front-month futures.

The euro EUR= slipped to a latest three-month low against the dollar, helping keep French wheat in contention for more sales to the crucial Moroccan market, traders said.

But French prospects in Egypt appeared slimmer, with market talk that its state grains buyer had made purchases of Black Sea wheat for November/December shipment in the past week.

"The week has started with Russian wheat cheaper than the west EU and rest of the Black Sea with Argentina still the world’s cheapest," one German trader said.

In Egypt, Russian 11.5% protein wheat was below EU prices at around $248 a ton cost and freight included (c&f), traders said.

Ukrainian was at about $250 a ton c&f, while French and Romanian wheat were both at around $252-$253 a ton c&f.

Talk of Chinese interest in U.S. wheat after a trade truce between Washington and Beijing, sustained background support for futures, with Chicago prices Wv1 at a three-month high. GRA/

However, some traders cautioned that any Chinese purchases appeared most likely to be limited to relatively small volumes of soft white wheat, a niche grade.

European Union soft wheat exports so far this season as reported by the European Commission jumped almost 1.8 million tons last week as they included missing data for top EU wheat producer France.

The Commission's tally for EU soft wheat exports since the start of the 2025/26 season in July was 8.03 million tons as of November 2. That was 4% below the year-earlier level, compared with a 21% lag a week ago, the data released on Tuesday showed.

($1 = 0.8575 euros)