EU wheat extends gains on weather concerns and Iran war worries

PARIS, April 29 (Reuters) - European wheat futures rose to a one-month high on Wednesday, supported by dry weather in the U.S. wheat belt and soaring oil prices linked to the Strait of Hormuz standoff.

Benchmark September milling wheat BL2U6 on Paris-based Euronext was up 1.4% at 217.25 euros ($254) a metric ton by 1515 GMT.

Chicago wheat Wv1 was up 1%.

"Markets are supported by the dryness in the U.S. and high oil prices, both indirect but powerful factors," one German trader said. "Reports President Trump is planning a long-term blockade of the Hormuz Strait are the dominant factor in grain markets today."

European cash markets did not gain significant support from the dryness in the U.S., probably because Black Sea wheat was expected to dominate global exports in the new season, he said.

There were also hopes of more sales of EU wheat to U.S. East Coast buyers in the coming weeks if U.S. prices remain high.

Buyers in the United States purchased milling wheat in Poland to be supplied from the summer 2026 harvest because of high U.S. wheat prices, European traders said last week.

Export demand remained thin as buyers held back in the hope of an Iran peace deal.

Among thin demand for 11.5% protein wheat was a buyer in Libya seeking about 10,000 tons of EU wheat for May shipment and a Turkish buyer seeking about 10,000 tons at around $245 a ton cost and freight (c&f) for May shipment.

Indonesian buyers were seeking two panamax-size consignments of Bulgarian 11.5% wheat and two of Ukrainian 11.5% wheat for May/June shipment at $276 and $279 a ton c&f respectively.

An Egyptian buyer was also seeking 30,000 tons of Russian 12.5% wheat for May shipment at an undisclosed price while a Turkish importer sought 10,000 tons of Black Sea 12.5% wheat at $250 a ton c&f for May shipment.