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EU wheat retreats as euro jumps, USDA report looms

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PARIS, June 12 (Reuters) -Euronext wheat fell on Wednesday after a sharp rebound in the previous session as a jump in the euro and results in an Egyptian tender underscored export challenges while traders adjusted positions before widely watched U.S. crop forecasts.

September wheat BL2U4 on Paris-based Euronext was down 2.3% at 240.75 euros ($261.19) per metric ton at 1532 GMT, giving back most of its 3% gain from Tuesday.

Chicago wheat Wv1 also retreated. GRA/

Traders said Egypt’s purchase of 400,000 tons of Black Sea wheat on Tuesday depressed sentiment, even if Russian wheat was overlooked.

“Russia’s floor price is still in place to restrain exports as seen in Egypt’s tender, but real Russian prices are lower," a German trader said.

"Egypt’s tender also showed Ukrainian wheat is coming into export markets in ever bigger volumes and looking cheapest as shipping from Ukraine continues without Russian attacks.”

The euro's sharp rise against the dollar, following a lower than expected U.S. inflation reading, also weighed on export sentiment in Europe. FRX/

Traders are squaring positions ahead of the U.S. Department of Agriculture's (USDA) world supply-demand report later on Wednesday.

The market is notably watching for its assessment of U.S. and Russian production prospects following mixed weather this year.

($1 = 0.9217 euros)

Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg
Editing by Tomasz Janowski


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