EU wheat subdued as traders assess Russia-Ukraine war news

PARIS, Oct 23 (Reuters) - Euronext wheat was little changed on Friday, holding near a three-week low as traders weighed latest attacks in Russia's war with Ukraine against diplomatic moves to end a conflict that disrupted Black Sea grain trade.

December wheat on Euronext was unchanged on the day at €234.25 ($262.34) a metric ton at 1607 GMT.

The benchmark contract remained near a three-week low of €232.50 struck on Wednesday and again on Thursday.

Chicago wheat edged higher, moving away from a three-month low hit on Wednesday. GRA/

Ukrainian President Volodymyr Zelenskiy said on Friday that peace negotiators from Ukraine, Russia and the United States would meet in the first half of November in Abu Dhabi.

Washington, meanwhile, announced a local ceasefire between Russia and Ukraine from October 29 covering the Russian-controlled town of Oleshky.

However, attacks continued in the war, including a drone strike that sank a cargo ship off the Romanian Black Sea coast.

"Overall markets will closely watch the peace talks between Ukraine and Russia over the coming days/weeks," British merchant Frontier Agriculture said in a note.

"Then global wheat markets could come under further global pressure as, on paper, there's plenty of wheat to go around still."

Rising Russian exports through the Baltic Sea and the start of Southern Hemisphere harvesting were maintaining expectations of ample supply.

In Argentina, the Rosario Stock Exchange on Wednesday increased its forecast for the country's upcoming wheat harvest to 23.8 million metric tons, from the 21 million last month.

Hopes of de-escalation in the Black Sea and optimism about Southern Hemisphere crops have encouraged investment funds with large long positions in Euronext wheat to cut their exposure.

In France, sowing of soft wheat and winter barley accelerated last week, data from farm office FranceAgriMer showed, as farmers got field work done before wet weather this week.

In a potential setback for farmers, sources said that Algeria had asked urea producers to stop exporting the fertiliser to France, adding to trade curbs that have followed a diplomatic rift between Algiers and Paris.

($1 = 0.8929 euros)