EU wheat edges towards contract lows as supply pressure weighs

PARIS, Dec 5 (Reuters) - European wheat futures fell for a second straight day on Friday, approaching contract lows as abundant global supplies hung over the market.

March wheat BL2H6, the most-active contract on Paris-based Euronext, settled 0.3% down at 189.25 euros ($220.23) per metric ton, edging back towards the contract low of 186.75 euros struck on Monday.

Chicago wheat Wv1 also eased, with grain markets lacking impetus ahead of a widely followed U.S. Department of Agriculture world crop report next Tuesday. GRA/

Statistics Canada's bigger-than-expected estimate of the country's wheat crop on Thursday reinforced expectations of hefty supplies across major exporting countries, after recent upward revisions to forecasts in Argentina and Australia.

"It's very subdued before the USDA report, though the market is anticipating that the USDA will factor in the StatsCan estimates," a futures dealer said.

The United Nations' Food and Agriculture Organization on Friday increased its forecast of world cereal production and stocks this season to record highs.

A favorable start to the growing season in Europe added to supply pressure.

Nearly all French soft wheat crops remained in good condition ahead of winter, farm office FranceAgriMer said on Friday.

In oilseeds, front-month February rapeseed COMG6 on Euronext ended 0.4% higher at 476.50 euros a ton, recovering from a six-week low on Thursday when StatsCan also pegged the country's canola (rapeseed) crop above market expectations.

($1 = 0.8593 euros)