European wheat futures edge higher in light trade

European milling wheat futures edged higher on Monday in low volumes as the market took a breather from last weeks rally supported by strong export demand and tightening global supplies, traders said. * "For the moment there is no tender in the pipeline, the size of the (European wheat) crop is known, the Russian export news was mostly priced in last week, so we are consolidating," one trader said. * Russias two main grain market analyst groups cut their 2012 grain and wheat harvest forecasts on Monday after the start of harvesting campaigns in Urals and Siberia regions showed weak crop prospects. * By 1048 GMT, front month November on European milling wheat futures <0#BL2:> was 0.3 percent higher at 263.50 euros a tonne. One trader put the resistance at 265-266 euros. * Comments by Russias farm minister on Friday saying all instruments to control local grain prices were on the table, except an embargo on exports, drove prices higher on wheat markets from Chicago to Paris. Operators saw a signal that Moscow did not rule out export curbs. * "There are still many rumours about the situation in Russia and the U.S," one trader said. "People still have a hard time believing information out of Russia, even if they cut their estimates." * Operators also pointed to the dull U.S. wheat market, which they said was also pausing after last weeks run, and shrugging a rise on corn and soybean futures. * Traders expected Morocco to come on the market to buy wheat soon, possibly this week. * "Egypt came twice this month and Algeria bought over 350,000 tonnes last week. Now we are waiting for Morocco. They will have to come back," another trader said. * But the Moroccan government, facing its biggest wheat import campaign this year in three decades, said last week it would not tap international soft wheat markets before the bulk of its domestic harvest is sold. GERMANY * German prices were little changed as the Paris market failed to provide impetus and as rapid progress continued to be made with the German wheat harvest. * Standard milling wheat for September delivery in Hamburg was offered for sale flat but remaining higher than Paris at 267 euros a tonne with buyers at around 266 euros. * "Attention is on the progress and quality of the German wheat harvest which has made very fast progress in the last week," one German trader said. "We have had mostly sunny weather for a week with high temperatures which have together enabled a big acceleration in harvesting after a slow start." * Germany had an exceptionally wet and cool start to the summer, which delayed the harvesting start. * "Wheat harvesting is finished in many areas in the south and centre of the country," another trader said. "The hot weekend weather meant wheat was dry and rapid progress was made in the remaining northern regions." * "I expect the harvest to be completed in the coming week." * Prices as of 1140 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 263.75 1.00 +0.38 195.25 35.08 London wheat 202.00 1.75 +0.87 153.65 31.47 Paris maize 258.75 1.75 +0.68 197.25 31.18 Paris rape 512.00 1.25 +0.24 421.50 21.47 CBOT wheat 875.00 0.50 +0.06 671.25 30.35 CBOT corn 807.00 8.50 +1.06 654.75 23.25 CBOT soybeans 1685.25 14.25 +0.85 1207.75 39.54 Crude oil 96.15 0.14 +0.15 98.83 -2.71 Euro/dlr 1.23 0.02 +1.56 1.30 -5.03 * 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. (