EU wheat extends run to 3-month high on weather and war risks

PARIS, Feb 20 (Reuters) - Euronext wheat climbed to a three-month high on Friday as concern over weather risks to crops and U.S.-Iran tensions fuelled more short-covering, traders said.

Fresh gains in U.S. wheat futures Wv1, which have led the rally in wheat markets this week, also supported Euronext. GRA/

Weakness in the euro EUR=, which held near a four-week low against the dollar, lent further support to the European market.

May milling wheat BL2K6, the most active position on Euronext, settled 2.1% up at 199.00 euros ($234.20) a metric ton, after reaching its highest since November 19 at 199.50 euros.

Reports of high winds and wildfires in the U.S. Plains this week have revived worries about dry conditions in some wheat zones.

An abrupt end to Russian-Ukrainian peace talks and the threat of U.S. military action against Iran have also unsettled investors. MKTS/GLOB

“There is continued worry about a possible armed conflict between Iran and the U.S., and concern about U.S. crop weather," a German trader said.

A decline in crop ratings in France following torrential rain, as shown by data on Friday, also put attention on weather risks as the northern hemisphere wheat emerges from winter.

In exports, the euro's weakness and hopes that certain North African buyers could return to the market in the coming days were boosting sentiment in Europe, the trader said.

Demand in Egypt was quieter after active import purchases of Russian, Ukrainian and Romanian wheat in the two previous weeks.

But traders still reported Egyptian purchase interest this week for Black Sea 12.5% protein wheat at about $248-$253 a ton cost and freight (c&f) for March shipment.

Traders were also digesting the U.S. Supreme Court ruling that struck down President Donald Trump's global tariffs.

"For now, the tariff headline leans constructive for risk assets but removes a bargaining chip for U.S. soybeans," Peak Trading Research said, referring to U.S.-Chinese trade negotiations in which soybeans have been a major issue.

($1 = 0.8497 euros)