EU wheat futures dip on export competition

PARIS, Nov 10 (Reuters) - Euronext wheat futures edged lower on Monday as sales of Black Sea supplies to Egypt underscored export competition and countered support from a rebound in Chicago prices.

December wheat BL2Z5 on Paris-based Euronext was down 0.3% at 191 euros ($222.74) a metric ton by 1706 GMT. The front-month contract was set for a fourth straight daily fall as it retreated from a two-month peak struck last week.

Dealers said the session was also marked with adjustments by investment funds shifting some short positions to second-month March futures BL2H6 ahead of next Monday's expiry of options against December futures. The March contract was down 0.4% at 194.50 euros.

Egypt's state grain buyer has purchased about 500,000 tons of wheat in recent weeks for import between late December and January, the agency told Reuters on Monday, adding that this included about 200,000 tons of Russian wheat, with the remainder sourced from Ukraine, Bulgaria and Romania.

The announcement followed market talk last week of Egyptian purchases of wheat from the Black Sea region, highlighting competition for France.

Russian wheat exports are sustaining a brisk pace at the start of November, analysts said.

A rebound in the euro late last week from a three-month low against the dollar had also pressured Euronext, though the euro edged back down on Monday. FRX/

A bounce in Chicago wheat Wv1 lent some support to Euronext. The U.S. market recovered from a two-day slide as traders remained hopeful that a trade truce with China will revive agricultural trade while steps towards ending a federal government shutdown bolstered general investor sentiment. GRA/

($1 = 0.8575 euros)