EU wheat slips to two-week low as traders ponder Iran war outcomes

PARIS, March 20 (Reuters) - Euronext wheat fell to a two-week low on Friday as traders adjusted positions before the weekend as they assessed the possible course of the U.S.-Israeli war on Iran.

May milling wheat BL2K6, Euronext's most-active position, settled down 1.8% at 203.25 euros ($235.08) a metric ton after earlier setting a two-week low at 203.00 euros, a far cry from a seven-month 212.50 euro peak at the start of last week.

Chicago wheat Wv1 also fell, facing additional pressure from a bounce in the dollar and forecasts for some rain in dry U.S. wheat belts next week. GRA/

Brent crude LCOc1 saw choppy trading on Friday as investors assessed efforts by Washington and its allies to boost oil supply after attacks on energy facilities, as well as U.S. plans to send more forces to the Middle East. O/R

Comments by Israeli Prime Minister Benjamin Netanyahu, who said Iran can no longer enrich uranium, tempered market worries about a protracted conflict, a grain futures dealer said.

"Some are wondering if the Iranian conflict might end soon," he said of the pre-weekend drop in wheat.

Grain prices have reacted to fluctuations in crude oil, reflecting the widespread use of some grains in biofuel and investor interest in agriculture as an inflation hedge.

Investment funds have switched to a net long position in Euronext wheat since late February amid the Iran crisis.

Crop news underscored the prospect of more ample global supply in 2026, though wheat production was expected to ease from a bumper level last year.

Consultancy Sovecon said on Thursday it had raised its forecast for the 2026 wheat crop in top exporter Russia due to generally favourable weather.

In France, 84% of soft wheat crops were rated as in good or excellent condition by March 16, unchanged from the prior week and up from 74% a year ago, FranceAgriMer said on Friday.

($1 = 0.8646 euros)