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Paris wheat hits 6-week low on U.S. crop progress, Russian rain

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Adds closing price, new low

HAMBURG/PARIS, June 17 (Reuters) -A slide in Euronext wheat futures accelerated on Monday, with benchmark prices ending at six-week lows, as U.S. harvest progress and rain relief in the Black Sea region created supply pressure.

September milling wheat BL2U4 on the Paris-based Euronext closed down 2.9% at 229.75 euros ($246.38) a metric ton, its fourth straight daily fall.

The close was at the day's low and its weakest since May 2. The contract has been receiving chart support at the 230 euro threshold.

After rallying to one-year highs in May when frosts and dryness led to reduced forecasts for Russia's crop, Euronext has faced selling momentum on the back of an advancing U.S. harvest and showers in parched wheat belts in Russia and Ukraine.

"The weather had pushed prices higher and now it's pushing them back down," a futures dealer said.

Harvesting was also getting underway in southern Europe and in Romania farmers could gather a record crop of 10.45 million tons after beneficial rain during spring, Argus said.

A bumper harvest in Romania could limit an expected drop in European Union output after torrential rain disrupted planting and crop development in larger producers France and Germany.

In France, trader are monitoring widespread rain forecast this week to see if adds to strain on crops after a damp spring.

"Export demand is starting the week very quiet with no major new tenders,"one German trader said. "The Eid al Adha holiday period in Middle Eastern importers is likely to keep demand pretty quiet this week."

"Cheap prices offered again by Russian an other Black Sea exporters despite worries about dryness damage to Russian crops."

Russian 12.5% protein July delivery wheat was $234 a ton FOB late last week, $8 down on the previous week, said consultancy IKAR.

Reporting by Michael Hogan and Gus Trompiz; Editing by David Gregorio and Richard Chang


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