EU wheat back above 200 euros on Mideast war worries

PARIS, March 5 (Reuters) - European wheat futures rose on Thursday to cross the psychological 200-euro mark again as the continuing U.S.-Israeli war with Iran drove fresh gains in crude oil.

May milling wheat BL2K6, the most-active position on Euronext, settled 1.3% higher at 202 euros ($234.08) per metric ton to move back near Tuesday's six-month high of 205 euros.

Euronext wheat had retreated on Wednesday as investor hopes for a short conflict steadied oil prices. But a renewed focus on disruption to energy supply and shipping pushed crude oil sharply higher on Thursday. O/R

"Markets appear set for continued volatility as traders balance supportive geopolitical risks and technical momentum against comfortable global supply outlooks," British merchant ADM Agriculture said in a note.

A fall in the euro against the dollar, as the U.S. currency attracted safe-haven demand, also supported Euronext prices.

The impact on grain supply from the Middle East conflict was seen as relatively limited for now, with importers typically making advance purchases before the current Ramadan holy month, though some buyers faced logistical snags.

“Shipping into the Gulf remains impossible," adding that alternative ports for unloading in the region were being sought.

“There have been the first inquiries about possible resales of cargoes on ships carrying corn and wheat and this could intensify in the near future if the Hormuz strait stays blocked and no quick alternative unloading ports are found.”

There was no visible rush to book extra supplies, with tenders like one by Tunisia to be held on Friday seen as representing regular demand, traders said. GRA/TEND

A rise in shipping costs could nonetheless influence export markets.

"This could turn out to be more of a freight tender than a wheat one," another trader said of Tunisia's planned tender.

Traders were also monitoring tensions in fertiliser markets, with potential repercussions on farmer planting and crop treatments.

($1 = 0.8630 euros)