EU wheat rallies as U.S weather and euro support

PARIS, Feb 19 (Reuters) - Euronext wheat rose on Thursday to a 2-1/2 month high as weather concerns fuelled a rally in Chicago while an easing in the euro boosted European export prospects, traders said.

May milling wheat BL2K6, the most active position on Euronext, was up 1.8% by 1707 GMT at 194.75 euros ($228.95) a metric ton, its highest since November 27.

Chicago wheat Wv1 was up nearly 2% having hit its highest since early July. GRA/

High winds in the U.S. Plains, which have fanned wildfires and raised worries about soil erosion in some dry zones, have added impetus to short-covering in the wheat market.

"Chicago and Kansas wheat climbed to multi-month highs on strong U.S. export sales, fund short-covering and Southern Plains weather risks, including drought and wind damage," British merchant ADM Agriculture said.

Euronext, which had lagged gains in Chicago on Wednesday, drew momentum on Thursday from a lower euro EUR=.

"Markets are currently very currency-driven and the weaker euro is bringing French wheat back into contention in the important Egyptian market," a German trader said.

Russian, French and Ukrainian 11.5% protein wheat for March/April shipment to Egypt were all quoted around $249-$250 a ton cost and freight (c&f) included to Egypt, he said, with Romanian about $3 higher.

Some demand was seen this week from buyers in north and west Africa, but cheaper prices from rival Argentine and Black Sea suppliers along with lack of farmer selling made it difficult to sell German wheat, traders said.

There was uncertainty over demand prospects in Morocco, the European Union's biggest wheat export market, where heavy rain has raised the prospect of a bigger local crop this year while also delaying unloading of recent shipments.

In France, traders were monitoring incessant rain that has caused flooding in some western areas, though the threat to wheat crops was seen as limited for now.

Inconclusive peace negotiations between Russia and Ukraine, and tensions between Iran and the United States also helped underpin wheat like other commodity markets, traders said.

($1 = 0.8506 euros)