UPDATE 1-EU wheat ends flat as euro support offset by Chicago drop

Updates with the close

PARIS, Jan 8 (Reuters) - Euronext wheat closed unchanged on Wednesday, with support from a weaker euro countered by lower Chicago futures in quiet trading as participants awaited U.S. government crop data, traders said.

Benchmark March milling wheat BL2H5 on Paris-based Euronext settled at 230.75 euros ($237.70) per metric ton, matching the previous close.

Earlier it had risen to 232.75 euros as it recovered from a one-week low of 229.00 euros touched on Tuesday.

The euro EUR= eased against a broadly stronger dollar, making European grain cheaper internationally.

The dollar climbed as a CNN report that President-elect Donald Trump was contemplating the use of emergency measures for new tariffs put the focus back on potential trade barriers under his upcoming term. FRX/

“The euro weakness appears to be the main driving factor in wheat,” one German trader said.

The dollar's strength pushed Chicago wheat Wv1 lower, in turn capping the rise on Euronext. GRA/

Grain markets are shifting their attention towards crop reports on Friday from the U.S. Department of Agriculture, including updated estimates of U.S. and South American harvests.

Activity in Europe was restrained by the holiday period in Russia, the world's biggest wheat exporter, and other parts of eastern Europe.

Full Russian and Black Sea trading was not likely to resume until next week, making prices difficult to assess.

However, cheap offers of Ukrainian wheat were again seen on Wednesday, with 30,000 tons of 11.5% milling wheat offered for sale at $235-$236 a ton free on board (FOB) for January/February seaport shipment.

Argentine wheat was again the cheapest in global markets, with Argentine 11.5% wheat well below the EU at $224-$227 a ton FOB.

“Argentina’s wheat crop is almost over so the market is not worried about the weather reports in focus for soybeans and corn,” the trader said.

Competition from Black Sea and Argentine supplies have contributed to sluggish EU wheat exports, which are running one-third below last season's level.

Financial investors reduced their net short position in Euronext wheat last week, data published by the exchange on Wednesday showed.

($1 = 0.9708 euros)

(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Emelia Sithole-Matarise and Elaine Hardcastle)

((gus.trompiz@thomsonreuters.com))