* Benchmark November milling wheat was up 3.00 euros or 1.52 percent at 200.50 euros a tonne by 1608 GMT, after touching 201.25 euros and on track to end the volatile week about one percent higher.
* The contract had fallen to 195.75 euros in morning trade to test support around 195 euros on earlier losses in oil and equities linked to mounting economic fears.
* Gold set a record high on Friday on safe-haven buying but US stocks, crude oil and commodities rebounded after the US dollar plunged to a record low against the Japanese yen on speculation authorities will not halt the yen's surge.
* Traders said US corn futures remained the driver and that its moderate losses during a sell-off this week in stock markets had allowed wheat to hold up.
* "Corn is the key to everything," a French dealer said. "As long as corn doesn't fall harder we shouldn't either."
* US corn, wheat and soybean futures rose on Friday as the dollar retreated, oil firmed and equities pared losses, with the Dow Jones industrial average inching back above 11,000 points before retreating in choppy trade.
* US grains have been supported by the prospect of declining yields for the corn crop, as well as a weather-affected harvest of spring wheat and the risk drought will hurt sowing of the next winter wheat crop.
* Operators said European wheat was also finding a floor in Russian wheat prices, which were rising after a wave of export sales since a grain embargo was lifted on July 1.
* "Prices are converging and as long as Russian wheat is rising we shouldn't really fall," the dealer said. "I don't see Paris wheat below 185 euros in the next two months if Russian wheat is rising."
* Russian wheat is for now dominating sales to Middle Eastern importers, including a 180,000-tonne sale to Egypt on Thursday.
* These shipments have helped curb European Union prices and exports in recent weeks, with weekly EU data showing wheat export licences so far this season were below year-ago levels and also below import licences awarded since July.
* In Ukraine, milling wheat is expected to dominate the 2011 harvest with the share of milling wheat reaching 70 percent of new crops as of Aug 18, Ukraine's Farm Ministry said on Friday, while analysts and traders have expected a much smaller share of food wheat.
* In oilseed markets, November rapeseed added 1.50 euros or 0.36 percent to 418.25 euros a tonne, rebounding from an earlier low at 410.75 euros.
BRITAIN
* London feed wheat also rebounded in the afternoon trade, in line with Paris and Chicago. London's November feed wheat traded 1.5 pounds or 0.92 percent higher at 164.00 pounds a tonne.
* Harvest progress was aided by dry weather in most wheat-growing regions.
* "The U.K. is right in the middle of harvest. We're pleased with the quality and yields at the moment," said the broker.
* "Farmers are not selling very much at the moment because they sold a fair bit early on," the broker added.
GERMANY
* In the EU's second-largest wheat producer Germany, prices were unchanged with serious concern now developing about rain damage to Germany's harvest.
* Traders said German wheat prices remain well above Paris levels because of rising concern rain will reduce much of Germany's crop this year to only animal feed standard.
* Standard new crop bread-quality wheat for September and later delivery in Hamburg was offered for sale unchanged at 212 euros a tonne with buyers at around 210 euros.
* Repeated rain has now disrupted Germany's wheat harvest for weeks. Much of the crop in north and north-east Germany, key export producers, has still not been gathered although work in south and central Germany is making better progress.
* "People are now starting to get extremely worried about the quality of the wheat remaining on the fields in north Germany," one German trader said. "It seems that a very large proportion of the remaining wheat will only reach feed quality."
* Traders estimate that 60 to 70 percent of wheat is still unharvested in north Germany, a key export producing region.
* Sunny and hot weather forecast from Saturday to Monday which could allow some weekend harvest progress but with showers expected again from Tuesday.
* "Some people are starting to fear the worst and there is talk that the remaining volumes will have a much higher feed wheat level than previously thought," another trader said. "There are estimates that well over a third of wheat in northern regions is only feed quality, unless there is a substantial improvement in wheat this proportion of feed wheat could rise."
* "Feed wheat prices have fallen to 20-30 euros a tonne below milling wheat against only 10 euros under last week," he added.
* French analyst Strategie Grains had forecast on Aug. 11 that 80 percent of the German crop would be milling quality.
ITALY
* Italian bread wheat prices were little changed on the week at about 230 euros a tonne for prompt delivery, including delivery charges, in thin trade with main grain bourses closed this week for summer holidays, traders said.
* Maize prices fell by about 10 euros on the week to 252-260 euros a tonne, driven down by expectations of bigger new crops and by competition from increasing imports of the Black Sea origin feed wheat, they said.
Copyright Reuters, 2011