EU wheat set for third consecutive monthly gain

PARIS, March 31 (Reuters) - European wheat futures were poised for a third straight monthly gain in March, supported by strong oil prices and a rebound in wider markets on hopes of de-escalation in the Middle East, though a strong euro on Tuesday tempered advances.

Benchmark May milling wheat BL2K6 on Paris-based Euronext was up 0.5% at 204.75 euros a metric ton by 1600 GMT. It was on track for a 1.4% gain this month after surging 4.4% in February.

Meanwhile in Chicago, wheat was up 1.85% at $6.18 a bushel.

"Euronext holding well over 200 euros is a burden to the export outlook," one German trader said.

Brent crude oil prices were on track for a record monthly increase. MKTS/GLOB

Grain prices have broadly tracked fluctuations in crude oil during the Iran war, reflecting the use of crops such as corn in biofuels and exposure to rising energy and fertiliser costs.

The U.S. Department of Agriculture said U.S. farmers plan to plant less corn and more soybeans in 2026 as the conflict drives up fertiliser and fuel prices.

While international tenders gave mixed signals, traders said the Iran war continues to influence import costs.

Tunisia’s tender for 100,000 tons of soft wheat recorded a lowest price of $274.73 a ton cost and freight (c&f), higher than the $271.69 c&f paid in a March 6 tender.

In contrast, Jordan's purchase of 60,000 tons of hard wheat was completed at $275.95 a ton c&f, slightly lower than the $277.50 a ton c&f paid on March 17.

For April/May shipment, traders noted Russian and Polish/Baltic 12.5% wheat priced at $238–$239 a ton free on board (fob) while German and Romanian 12.5% wheat was $240–$243 a ton fob.

U.S. hard red winter wheat remained less competitive at more than $279 a ton fob, with Argentine supplies also dwindling after large recent exports.