EU wheat edges down from two-month peak

PARIS, Feb 3 (Reuters) - European wheat futures ticked down on Tuesday from a two-month high as the euro regained ground against the dollar and traders assessed volatility in wider commodity markets. March milling wheat (BL2H6) , the most active position on Euronext’s Paris-based futures market, settled 0.1% down at 193.25 euros ($228.38) a metric ton. The contract earlier reached its highest since November 20 at 194.75 euros, slightly above a previous two-month high from Friday. Grain markets earlier gained support from a rebound in crude oil and precious metals as the previous day’s slide in commodity markets subsided. However, a later rise in the euro (EUR=) against the dollar as a rally in the U.S. currency petered out, curbed Euronext by making western European grain more expensive overseas. (FRX/) Traders were monitoring movements in grain futures and exchange rates, given stiff competition between different export origins in major import markets such as Egypt and Morocco. There was market talk of steady Egyptian demand for Black Sea and French origins. At least two shipments of Ukrainian 11.5% wheat were sold to Egypt in the past week at about $245-$250 cost and freight (c&f) for near-term shipment to Mediterranean ports, traders said. Traders also cited rumours that several cargoes of French wheat had been sold recently to Egypt for February/March shipment, in addition to two vessels due to load at the northern French port of Dunkirk. “French and Black Sea prices are currently very close in c&f terms in the important Egyptian market,” one German trader said. “The Black Sea still has a small price lead, but this could be quickly cut away by exchange rate and Euronext moves.” Egyptian purchase interest for Ukrainian 11.5% protein wheat was again reported on Tuesday at around $246-$247 a ton c&f, with winter disruption to Russian logistics transferring purchase interest to Ukraine, traders said. European Union soft wheat exports since the start of the 2025⁄26 season in July had reached 12.82 million metric tons by February 1, unchanged from a year earlier, EU data showed on Tuesday. However, after taking into account gaps in the official data, analysts estimate that EU exports are running well above last season’s level. ($1 = 0.8462 euros)