EU wheat falls with Chicago, rainfall forecast after dry weather

PARIS, April 30 (Reuters) - European wheat prices dropped nearly 2% on Thursday, paring gains recorded in the previous session, pressured by a fall in U.S. markets, weaker crude oil prices and rainfall forecasts in both the United States and Europe after lasting dry weather.

Benchmark September milling wheat BL2U6 on Paris-based Euronext, settled at 213.50 euros ($250.29) a metric ton after hitting a six-week high on Wednesday.

"Forecasts of rain in some dry U.S. regions is weakening prices today, with crude oil also falling despite lack of significant progress towards an Iran peace deal," one German trader said.

"But how much rain actually falls is the big question, while there seems little hope the Hormuz Strait will re-open soon."

The condition of French cereal crops worsened from last week, data from FranceAgriMer showed on Thursday, in a sign that lasting dry weather in the European Union's largest grain producer may be taking a toll on yield.

However, some rain is forecast in France and Germany next week, which could bring some relief to crops.

The stronger euro was also weighing on sentiment as it makes euro-denominated cereals like French and German more expensive on world markets.

Russian and Ukrainian 11.5% protein wheat were similar at around $234 to $236 a ton FOB for May shipment with French only about $2-$4 higher depending on Euronext and currency moves, with Romanian about $12-$14 over Russia and Ukraine, traders said.

Euronext's grain futures and cash markets will be closed on Friday for a public holiday.