EU wheat eases after hitting one-week high

PARIS, Feb 13 (Reuters) - Euronext wheat edged back from one-week highs on Friday as a short-covering rally in Chicago faded and India's decision to authorise exports put the focus back on ample global supply.

May milling wheat BL2K6, now the most-active position on Euronext, was down 0.4% at 191.50 euros ($227.25) a metric ton by 1658 GMT. Front-month March BL2H6 was 0.7% lower at 191.00 euros.

Both contracts earlier hit one-week highs after posting gains in the three previous sessions.

Chicago wheat Wv1 fell around 1% after climbing to a near three-month peak on Thursday, spurred by short-covering. GRA/

While Chicago had drawn some impetus from brisk U.S. shipments, the European market remained curbed by faltering exports against a backdrop of abundant international supply.

India on Friday announced it would allow the export of 2.5 million tons of wheat, ending an export ban imposed in 2022.

"There's no lack of wheat around the world," a futures dealer said.

While Indian supplies were not seen as among the most attractive overseas, they could nonetheless absorb some residual demand, traders said.

“Indian wheat quality is generally not good, but it could be attractive to third-world importers seeking the lowest possible prices, or to Asian feed wheat buyers,” a German trader said.

Europe already faces stiff competition in wheat export markets, notably from a record Argentine crop.

French farm office FranceAgriMer on Wednesday cut its forecast for the country's 2025/26 soft wheat exports outside the European Union, while consultancy Expana on Thursday again lowered its outlook for EU soft wheat exports in 2025/26.

Traders nonetheless see scope for France to pick up more sales in the large Egyptian market.

French and Russian 11.5% protein wheat were still priced neck-and-neck in Egypt, both quoted around $248-$249 a ton cost and freight included (c&f) for March shipment depending on Euronext and euro moves, though Ukrainian wheat was about $2 a ton cheaper.

Traders also noted purchase interest from Italy for June shipment feed wheat at $251-$253 a ton c&f.

A favourable outlook for the 2026 harvest was also weighing on the market.

Consultancy IKAR on Friday said it had increased its outlook for Russia's 2026 wheat crop by 3 million tons to 91 million tons.

In France, condition ratings for winter wheat and barley were at three-year highs, FranceAgriMer data showed.

($1 = 0.8427 euros)