Euronext wheat holds steady after USDA report

PARIS, Sept 12 (Reuters) - European wheat futures edged higher on Friday, a day after almost touching contract lows, as grain markets barely reacted to news of strong supply and demand in a U.S. government crop report.

December milling wheat BL2Z5 on Euronext settled 0.1% up at 189.75 euros ($222.48) per metric ton.

On Thursday the benchmark position had almost equalled a contract low of 188.00 euros struck last week, before steadying.

The run-up to the U.S. Department of Agriculture's monthly world supply-and-demand report had encouraged wheat markets to consolidate after they were pressured this week by swelling global supply and falling Russian prices.

The USDA's data spurred limited price moves, with Chicago wheat Wv1 easing and corn Cv1 edging up. GRA/

Traders were digesting a higher-than-expected U.S. corn production forecast linked to an acreage revision, along with increased projections of export demand for corn and wheat.

The USDA's world wheat outlook confirmed abundant global supply, with a sharp increase in expected output leading to a rise in forecast stocks. WASDE13

The wheat market continued to assess price competition among exporting countries amid tepid demand from importers.

Traders noted that a decline in Russian prices remained moderate so far, and that an increase in the country's export duty from September 17 could curb Russian competitiveness.

"Demand is staying weak with hardly any new wheat purchase tenders issued this week. With Euronext also weak this week and more estimates of a big Russian crop, the bears are expecting Russian wheat to fall below $220 a ton," one German trader said.

Russian 12.5% protein September wheat was around $224-$226 a ton FOB. Russian 11.5% protein wheat was around $221 to $223 a ton FOB.

French wheat was about $2 more expensive depending on Euronext and currency moves, with Ukrainian wheat about $3 and Romanian about $5 over Russian, he said.

Traders reported buying interest from Egypt this week for Black Sea supply, with buyers seeking to pay around $246 a ton cost and freight (c&f) for September/October shipment of Ukrainian 11.5% protein wheat.

They were cautious, though, about a Bloomberg report of large purchases of Black Sea wheat by Egypt's state buyer, with most seeing a tally of purchases in recent months rather than new business.

($1 = 0.8529 euros)