EU wheat ticks higher on war uncertainty and weaker euro

PARIS, March 25 (Reuters) - Euronext wheat edged up on Wednesday, underpinned by a lower euro and doubts over ceasefire prospects in the U.S.-Israeli war with Iran.

May milling wheat BL2K6, Euronext's most-active position, settled 0.4% higher at 204.00 euros ($236.17) a metric ton. It earlier fell towards Monday's 2-1/2 week low of 199 euros, but again found chart support at the 200 euro threshold.

A sharp drop in oil prices after reports of U.S. proposals for ending the war with Iran earlier pressured wheat markets. But Iranian denials of negotiations with Washington maintained caution among investors, leading oil to pare losses and the dollar to gain ground. MKTS/GLOB

"It's hard to interpret the headlines, which are going in every direction," a Euronext dealer said of the war news.

Grain prices have broadly tracked fluctuations in crude oil during the conflict, reflecting the use of crops like corn in biofuels and investor interest in grains as an inflation hedge.

Grain markets are assessing potential repercussions on crop production from war-related tensions in fertiliser markets.

Some French farmers are planning to switch sowings from maize to sunflower seed, which requires less fertiliser and energy, the head of French grain industry association Intercereales said on Wednesday.

The European wheat market is also awaiting an Algerian purchase tender on Thursday.

Euronext delayed weekly data on positions held in its grain futures due to a technical issue, the exchange said in a market notice.

($1 = 0.8638 euros)