MADRID: European benchmark wheat prices added to prior gains on Thursday and fended off export-punishing strength by the euro due to broad-based gains on global commodities and financial markets.
* Additional support came from concerns cold weather in eastern Europe was threatening crops, although traders were split on assessing the level of snow cover.
* "On top of the general firmness, we now see the traditional weather market elements," a trader on the Euronext exchange in Paris said.
* Analyst ProAgro said on Thursday major exporter Ukraine's grain harvest was likely to fall considerably from a record crop last year due to bad weather.
* By 1651 GMT, front-month March milling wheat was 0.7 percent higher at 209.50 euros a tonne on Euronext, after climbing to a four-month high of 210.25 in earlier dealing.
* French exporters are hoping to at least partly unseat Russia and other suppliers to Egypt, the world's biggest wheat buyer.
* The euro hit a five-week high against a broadly weak dollar on Thursday, supported by the Fed decision and speculation of progress in Greek debt negotiations.
SPAIN
* Physical wheat in import-needy Spain drifted up in line with recent movements on world futures markets, but bid/offer spreads were still wide with few deals settled due to low demand and consumers awaiting the arrival of cheap Ukrainian wheat.
* Dealers also reported farmers were retaining domestic old crop wheat and demand was low due to a seasonal lull in the breeding cycle in what is home to Europe's biggest pig feed industry.
* "The (Ukrainian) wheat is coming, they still have time. Some of it has been sold, some hasn't, but no one is buying right now," a dealer said. "The market is dispirited. There is a lot of uncertainty and every one wants prices to fall."
* Prompt feed wheat in top grains port Tarragona was quoted at 214-218 euros a tonne, up about 1 euro since Monday.
* Benchmark wheat prices have risen about 18 euros above Dec. 20 levels, which explains lack of buying interest amongst hard-pressed livestock farmers facing a new recession in Spain.
GERMANY
* Germany's market firmed as Paris rose again with export hopes and continued feed wheat demand in north Germany supporting.
* Standard bread-quality milling wheat for February delivery in Hamburg was offered for sale up two euros at 210 euros a tonne with buyers at around 209 euros.
* "The markets seem to be supported by the perception of more export demand being transferred to west Europe," one German trader said.
* "Regardless of whether the rumours of Russian grain export restrictions are true, Russia seems to have made very heavy sales and will have to move wheat supplies from areas much more distant from its ports, which will continue to raise Russian prices on international markets."
* "Argentina has also suddenly dropped out of the export market because of the uncertainty about its crop and government export policy."
* "This means there is a growing lack of liquidity in global grain export markets and the west EU could start winning business again despite the stronger trend in the euro in past days."
ITALY
* Wheat prices in Italy, a major grain importer in Europe, were flat on the week in a balance between tight supplies of locally grown wheat and modest milling demand, traders said.
* Bread-quality soft wheat was unchanged at 213-218 euros a tonne for prompt delivery, ex-store, while higher grade wheat was flat at 228-233 and 231-235 euros a tonne, depending on quality, weekly trade data from Bologna's cereals bourse showed on Thursday.
* Maize prices added 1 euro on the week to 200-202 euros a tonne due to healthy demand from feed makers, traders said.
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