EU wheat falls as oil plunge weighs on grain markets

PARIS, March 10 (Reuters) - European wheat futures fell on Tuesday, pressured by a plunge in crude oil prices after U.S. President Donald Trump predicted that the war with Iran could end soon.

With traders focused on fluctuations in oil prices O/R and possible repercussions on grain trade, there was little reaction to a monthly U.S. Department of Agriculture world crop report.

"There's nothing to talk about with the USDA report. It's the crazy fall in crude," a futures dealer said.

Benchmark May milling wheat BL2K6 on Euronext settled 2.7% down at 204.00 euros ($237.80) a metric ton, pulling back from a seven-month high of 212.50 euros struck on Monday.

Oil prices plunged more than 13% on Tuesday as Trump's comments fuelled a pullback from Monday's near four-year peak.

Uncertainty over the course of the U.S.-Israeli war on Iran, plus a steep rise in shipping costs, encouraged some importers to hold back.

"Buyers are generally waiting to see what happens," a German trader said.

Egyptian buyers continued to show interest, although traders said it might be price-checking rather than firm demand.

They were seeking prices for about 170,000 tons of Black Sea 12.5% protein wheat mostly for April shipment including one 50,000 ton consignment at around $258 a ton cost and freight included (c&f) and four of 30,000 tons at differing prices, traders said.

Two Egyptian buyers were also each seeking up to 30,000 tons of 11.5% protein wheat for April/May Black Sea shipment, they added.

Algeria was understood to have bought some wheat in a tender seeking shipment to two small ports, traders said.

Initial results reported by traders, with a purchase price around $291 a ton c&f for Mostaganem and no purchases reported for Tenes, were seen as a sign of the war-related rise in grain and shipping markets.

In Poland, prices fell in the last week, with weak exports and large stocks depressing.

Polish 12.5% protein wheat fell about 5 zloty in the last week to about 830 zloty (195 euro) a ton for March/April delivery to port silos.

"Polish Farmers are often hoping for further price rise, but some are also selling stocks now, fearing that the prices could fall again as fast as they rose," one Polish trader said.

Weekly European Union data showed the bloc's soft wheat exports so far this season were up 9% from a year ago.

($1 = 0.8579 euros)