EU wheat steadies and rapeseed extends gains

PARIS, Jan 6 (Reuters) - European wheat futures edged higher on Tuesday to come off a two-week low with help from an easing euro, while rapeseed extended its recovery from a slide last month.

March milling wheat BL2H6, the most-active position on Euronext's Paris-based futures, settled 0.4% up at 189.00 euros ($221.00) a metric ton, after earlier falling to its lowest since December 22.

The euro EUR= fell against a broadly stronger dollar, making western European wheat cheaper for export, though ample availability in major exporting countries capped gains. FRX/

"We're holding around 190 euros as exports have been decent and wheat is competitive against corn," a futures dealer said. "It remains to be seen how exports will fare in the second half of the season."

Competition from Argentina, where farmers are wrapping up what is forecast to be a record-breaking wheat harvest, has raised doubts about western European export prospects in the new year.

European Union soft wheat exports since the start of the 2025/26 season last July reached 11.18 million metric tons by January 2, down 2% from a year earlier, though some figures were incomplete, the European Commission said on Tuesday.

Chicago wheat Wv1 edged up to recover further from a two-month low on Friday, with dry conditions in part of the U.S. winter wheat belt encouraging the bounce. GRA/

Grain markets are also watching investor flows linked to annual changes in the composition of commodity indexes, and looking ahead to supply and demand data from the U.S. Department of Agriculture next Monday.

A cold spell in western Europe, which has disrupted travel in France and the Netherlands, was not seen as severe enough to damage dormant crops, dealers said.

In rapeseed, February futures COMG6 on Euronext ended 0.9% higher at 467.00 euros a ton, adding to Monday's 2.4% jump.

A December drop on rapeseed, which took front-month prices to a 16-month low last Monday, has encouraged bargain buying by investors, dealers said.

($1 = 0.8552 euros)