EU wheat at two-week high as Black Sea risks support

PARIS, Dec 24 (Reuters) - European wheat rose for a fifth session on Wednesday to reach a two-week high as concern about war escalation in the Black Sea export zone and cold weather in Russia helped underpin prices in thin trading before the Christmas break, dealers said.

Euronext closed early on Wednesday and will remain shut on Thursday and Friday for the Christmas holidays.

March wheat BL2H6, the most active contract on Paris-based Euronext, settled 0.7% up at 190.25 euros ($224.27) a metric ton, after touching its highest since December 9 at 190.50 euros.

The price benchmark has recovered from a contract low of 185 euros a ton hit last Wednesday.

Chicago wheat Wv1 also rose for a fifth session. GRA/

Russian attacks on Ukrainian ports have reinforced short-covering by investors that often occurs before the year-end holidays. GRA/

The strikes have disrupted Ukrainian grain exports and taken attention away from a U.S. diplomatic push to end the conflict.

Severe cold in Russia this week has also encouraged short-covering, though some analysts say snow cover should limit frost damage to winter wheat crops.

Gains on Euronext were limited by strength in the euro EUR= against the dollar, which makes western European grain less competitive for export in a well-supplied global market.

Bumper volumes expected from ongoing harvests in Argentina and Australia are set to bolster export supply for the rest of the 2025/26 season.

Russia, meanwhile, confirmed it will set a grain export quota of 20 million metric tons for February 15 to June 30. That is double the year-ago level and suggests Russia has ample volumes of wheat to ship after a slower than usual start to its export campaign.

($1 = 0.8483 euros)