The price of European wheat fell on Friday due to Black Sea competition as well as a drop on U.S. market.

Euronext's benchmark May milling grain was down by 0.3% at 1500 GMT, to 226.00 Euros ($244.42) per metric ton. The price was set to rise 1% on a weekly basis after an 9% increase the week before.

The most actively traded wheat contract at the Chicago Board of Trade also fell 0.3% to $5.54-1/2 per bushel.

One German trader stated that "the market appears to be in a state of calm, with the future of Ukraine peace talks uncertain and the initial impact on U.S. Tariffs not as severe as originally feared due to a lot tariff-posturing."

He said that some importers might be waiting for a peace agreement in Ukraine and a tariff agreement between the U.S.

Traders said that the sharp drop in the Turkish currency after political unrest in Turkey this past week made it unlikely for Turkish mills to immediately take advantage of new opportunities to import wheat.

While the west EU finished the week with a higher wheat price, Russian and Black sea wheat ended the week at a lower price.

According to traders, the price of Russian and Ukrainian 11,5% wheat ranged between $244 and $246 per ton FOB. This is about $6-$7 less than west EU prices, depending on Euronext. Argentinean wheat was also at similar prices.

The U.S. soft winter red was cheaper, at $235-$240 per ton FOB. However, shipping costs were higher.

The demand for new crop Ukrainian feed wheat was high. Its price ranged from 215-219 euro per ton, including delivery to the Netherlands and north Germany.

CME Group, a financial markets operator, is developing plans to create a Black Sea Wheat Futures Contract that tracks Romanian and Bulgarian wheat prices. $1 = 0.9246 Euros (Reporting from Sybille De La Hamaide and Michael Hogan, Hamburg; editing by David Evans).

(source: Reuters)