MADRID, March 15 (Reuters) – European wheat futures edged higher in light trade and extended recent gains due to export demand and concerns crop damage may restrict supplies. * Benchmark May milling wheat was up 0.75 euros, or 0.36 percent, to 211.50 euros ($275.50) a tonne by 1246 GMT on the Euronext exchange in Paris. * The new-crop November contract was up 0.50 euros, or 0.25 percent, at 199.75 euros. * Mild gains for U.S. wheat helped push European wheat higher. * A one-month low for the euro against the dollar also helped boost exports from the 17-nation currency zone. * “The Paris grain market is continuing to rise helped by the ongoing decline in the euro against the dollar, wheat export demand and fears regarding the next harvest,” French consultancy Offre & Demande Agricole said in a note. * Analyst Strategie Grains on Thursday cut its forecast for the 2012 European Union wheat crop by 1.6 million tonnes to take account of winter damage, and warned it could be at risk from a drought in western Europe. * Egypt, the world’s largest wheat importer, has bought 120,000 tonnes of Canadian and U.S. wheat for May 1-10 shipment on a free on board basis, the main government wheat buyer said on Thursday. * French wheat was expected to benefit more from rising import needs in key customer Morocco, which is facing a sharp fall in its domestic crop. * European rapeseed futures for 2012 hit contract highs on the back of a rally in Chicago soybeans. May rapeseed was up 1.25 euros, or 0.26 percent, at 478.50 euros, off an earlier contract high of 479.50 euros. SPAIN * In Spain, physical wheat rose sharply to line up with recent gains on futures markets which make imports on which the country depends more expensive. * Dealers reported rising prices had coaxed some consumers back to the market after weeks of buying from hand to mouth, to replenish stocks and avoid further gains. * “It’s a tough situation, people don’t know where to turn and are a bit scared,” a trader said. * “It’s clearly time to buy. Every one in the Spanish market has been running on low stocks for months, so of course there is Vvolume now.” * A New Year rally caught out animal feed makers, who had expected prices to fall with the arrival of Black Sea wheat under a special European union quota. * Prompt feed wheat in leading grains port Tarragona was reported changing hands at 227 euros a tonne, ex-store, up 3-4 euros from a week ago. * Prices at 1302 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 211.00 0.25 +0.12 195.25 8.07 London wheat 171.50 1.00 +0.59 153.65 11.62 Paris maize 215.75 1.50 +0.70 197.25 9.38 Paris rape 459.00 1.00 +0.22 421.50 8.90 CBOT wheat 658.00 3.50 +0.53 671.25 -1.97 CBOT corn 660.50 3.75 +0.57 654.75 0.88 CBOT soybeans 1368.00 11.50 +0.85 1207.75 13.27 Crude oil 105.95 0.52 +0.49 98.83 7.20 Euro/dlr 1.31 0.04 +2.79 1.30 0.80 * All grain and oilseed prices for second position. Paris futures prices in Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel. ($1 = 0.7677 euros) (Reporting by Martin Roberts in Madrid and Gus Trompiz in Paris; editing by Keiron Henderson)
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