European wheat falls as Russian export flows weigh

PARIS/HAMBURG, Oct 28 (Reuters) - European wheat fell on Wednesday as signs of increasing Russian export supplies through the Baltic and Arctic seas, along with the prospect of renewed shipments from the Sea of Azov, reinforced bearish sentiment.

Benchmark December milling wheat on the Paris-based Euronext ended the daily session 0.8% lower at €226.75 ($252.15) a metric ton.

"The atmosphere remains bearish with Russian export supplies moving out of the Baltic Sea and even the Arctic Sea in ever-larger volumes," one German trader said.

A French trader added: "If shipments out of Azov can leave, it can only add more pressure to the market."

The Russian authorities have issued permits for vessels carrying grain for export to leave the Sea of Azov for the first time since July 10, when they closed maritime traffic in the area due to Ukrainian drone attacks, seven industry sources told Reuters.

Russian and Ukrainian wheat shipments through ports in the Azov-Black Sea region have been at a virtual standstill since mid-August after attacks on vessels and damage to terminals.

Russia is also starting grain exports from the Arctic port of Murmansk.

"Volumes of Russian wheat offered from the Baltic are large,” another German trader said. "Just today I saw sales offers for Baltic shipment for three 30,000 ton consignments of 12.5% protein and 110,000 tons of 11.5% in various consignments for November/December shipment."

This overrode hopes that part of a purchase by Tunisia of 100,000 tons of wheat on Wednesday could be sourced in France.

($1 = 0.8993 euros)