EU wheat falls on export-punishing euro strength, rapeseed firm

HAMBURG/PARIS, Feb 9 (Reuters) - European wheat futures fell on Monday to their lowest in more than a week as a stronger euro dented export prospects and concerns about cold weather damage to northern hemisphere crops subsided while rapeseed ended firm.

March milling wheat BL2H6 on the Paris-based Euronext exchange closed down 0.3% at 189.25 euros ($225.23) a metric ton. It earlier touched its lowest since January 28 at 188.50 euros as it extended losses from late last week.

The euro rose against a broadly weaker dollar, making European grain more expensive for export at a time of strong competition from the Black Sea region and Argentina. FRX/

"It's about the euro for wheat, and India for oilseeds," a futures dealer said.

May rapeseed COMK6 on Euronext closed up 0.3% at 489.25 euros a ton, after reaching a six-month high at 491.50 euros.

Rapeseed joined broad gains in the oilseed complex, led by Chicago soyoil amid expectations that a U.S.-India trade deal will boost flows of U.S. soyoil to India.

"Low price competition from cheap Argentine wheat is hindering EU sales, especially in the key Moroccan market," one German trader said. "Moroccan buyers are currently hesitant about making new purchases, as they are waiting to see if the Moroccan government restricts imports when the harvest starts around May/June."

Traders noted continued purchase interest from major importer Egypt, with talk of a purchase by Egypt's state buyer of about 300,000 tons of Romanian wheat in the past week.

"Market talk is of purchase interest on Monday for about 90,000 tons of Russian 12.5% protein milling wheat for February shipment," another trader said.

Warmer weather in Germany was easing fears about winter damage following double-digit frosts in February. But canals in north and central Germany were often still frozen, disrupting inland waterways shipping.