EU wheat regains ground on export prospects

PARIS, Dec 8 (Reuters) - Benchmark European wheat prices rose on Monday after a two-session fall as a weaker euro reinforced the export competitiveness of French supplies.

Participants were also adjusting positions before a U.S. Department of Agriculture world crop report on Tuesday. GRA/

March wheat BL2H6, the most-active contract on Paris-based Euronext, settled 0.8% up at 190.75 euros ($221.73) per metric ton, to move way from a contract low of 186.75 euros struck last Monday.

Euronext prices were was pressured last week by a rise in the euro EUR= against the dollar and further upward revisions to global wheat supply.

However, an easing in the euro, as investors adjusted positions in the run-up to a closely watched U.S. interest rate announcement on Wednesday, underscored the attractiveness of west European wheat following last week'a price fall, traders said.

"There's quite a lot of interest in French wheat," one trader said. "It's not easy to get hold of supplies for December when quite a few vessels are expected for loading," he said, adding that farmer selling remained slow.

Rumours since last week that Argentina's harvest was showing mixed quality were tempering expectations of stiff competition from Argentine wheat in core European export markets like Morocco.

Chicago wheat Wv1 was little changed ahead of Tuesday's USDA report. GRA/

A favourable start to the growing season in Europe was maintaining supply pressure after estimated record global wheat production this year.

In Ukraine, wheat production next year could increase to 23.9 million metric tons from 23.0 million this season, supported by a rise in the planted area and improved early crop conditions, Argus Media said on Monday.

In France, nearly all soft wheat crops were in good condition ahead of winter, farm office FranceAgriMer said on Friday.

($1 = 0.8603 euros)