EU wheat tracks Chicago lower as Mideast war assessed

PARIS, March 17 (Reuters) - Euronext wheat fell on Tuesday to a one-week low, pressured by weakness in Chicago futures as traders watched to see how the Middle East conflict affects international demand.

May milling wheat BL2K6 on the Paris-based Euronext exchange settled 1% down at 205.25 euros ($236.69) a metric ton.

The contract earlier touched its lowest since last Tuesday at 204.50 euros, moving further back from a seven-month peak of 212.50 euros struck on March 9.

Chicago wheat Wv1 also fell to a one-week low. GRA/

Wheat, like other grain markets, has drawn support from surging crude oil prices since the start of the U.S.-Israeli war with Iran. O/R

But farmer selling after recent price highs and uncertainty about the course of the Middle East war curbed wheat markets.

"Export demand is weak, with buyers waiting to see if some form of ceasefire can be agreed in the Iran war or some form of safe passage for ships leaving the Gulf,” one German trader said. "But nothing seems on the horizon yet."

An acceleration in Russian shipments kept traders focused on strong competition in a well-supplied wheat market. However, falling physical premiums in the European Union raised hopes of some fresh export demand when the Ramadan period ends in Muslim countries this week, traders said.

German 12.5% protein wheat for April/June delivery was at around 3.50 euros over the Euronext May contract, according to traders.

Polish 12.5% protein wheat was around 1 euro over Euronext May for March/April delivery, 2 euros over for May delivery and 3 euros over for June delivery, with recent Euronext firmness generating more selling by Polish farmers.

Baltic States new-crop 12.5% protein wheat for delivery from September traded several times in past days at level Euronext December BL2Z6, traders added.

EU soft wheat exports so far this season are up 8% from a year ago at 16.77 million tons, official data showed on Tuesday, though figures for several EU countries remained incomplete.

Grain trade association Coceral cut its forecast for 2026 soft wheat production in the EU and Britain, confirming its expectation for a drop from last year's bumper level.

($1 = 0.8672 euros)