EU wheat holds firm with euro support as cold weather assessed

PARIS, Feb 4 (Reuters) - Euronext wheat futures edged up on Wednesday to hold near a 2-1/2 month high as a weaker euro offset pressure from lower U.S. prices.

Trader were monitoring winter cold in northern hemisphere wheat belts, though snow cover was seen limiting the risks of significant crop damage.

March milling wheat BL2H6 on Euronext settled 0.3% up at 193.75 euros ($228.80) a metric ton.

The front-month contract had reached its highest since November 20 at 194.75 euros on Tuesday, helped by short-covering and an easing in the euro this week.

The euro EUR= edged down further against the dollar on Wednesday, making European grain slightly cheaper in dollar-priced export markets.

Chicago wheat Wv1, a global benchmark, fell as the firmer dollar in turned weighed on U.S. commodities. GRA/

Traders continued to gauge the possible impact on wheat crops of severe frosts in the United States, Europe and the Black Sea region.

"There is worry but it seems winterkill will be pretty small," a futures trader said. "With current global wheat supply it hardly matters."

In Germany, temperatures as low as minus 15 to minus 18 Celsius were not seen as a major threat to wheat and rapeseed.

"There is some concern about possible frost damage in parts of east Germany where snow cover is thin but markets are not reacting yet, as it is too early for evidence of actual damage," a German trader said.

"The main concern is frozen canals which are disrupting inland waterways logistics."

In Poland, there was also concern about crop damage, especially in west Poland after recent frosts as low as minus 20 degrees Celsius.

"Farmers are very reluctant sellers due to the cold winter and the risk of winterkill but logistics is the main problem with frozen silos and snow covered roads," a Polish trader said.

Polish 12.5% protein wheat rose about 5 zloty in the past week to around 810 zloty a ton (191.8 euros) for February port delivery.

Polish wheat export loadings included a ship taking on 30,000 tons for an unknown destination, one ship leaving with 17,000 tons for Namibia and another just sailed with 30,000 tons for Liberia.

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

($1 = 0.8468 euros)