* Analysts expect Thursday's US Department of Agriculture report on global supply and demand of farm produce to slash forecasts for South American crops due to scorching weather linked to the La Nina weather pattern. * "I think the market can rise further as we wait for the USDA report," a French dealer said. "It looks like they could tighten the world corn balance by reducing production (estimates) in Argentina." * In Europe's biggest wheat exporter France, the most active March milling wheat contract was up 4.25 euros in Paris, or 2.18 percent, at 199.50 euros a tonne by 1648 GMT. * Front-month January, which expires on Tuesday, was up 1.50 euros, or 0.75 percent, at 202.50 euros. * Persisting mild weather in France, following a warm autumn, were causing concerns that winter crops had grown too fast and could be at risk from any cold snap, traders said. * The euro hovered near 15-month lows and continued to bolster European trade by making grain priced in the common currency cheaper in export markets. * In oilseeds, rapeseed futures were also firm, in line with US soybeans and Malaysian palm oil, as weather concerns also drove the oilseed complex. * February rapeseed was up 4.75 euros or 1.05 percent at 457.50 euros a tonne. SPAIN * Physical wheat in major importer Spain rose in line with futures markets in Paris and Chicago, with additional upside from a lack of offers in drought-hit exporters Argentina and Brazil. * The market awaited results due on Thursday of bidding to import up to 1.6 million tonnes of wheat under the EU's TRQ scheme, much of which is expected to come from Ukraine. * Dealers expected the entire tranche to be placed and trade sources expect 300,000 tonnes to head to Spanish port Tarragona alone, but logistics problems were reported in the Black Sea. * "This isn't as much of a buyers' market as it was a month ago, regardless of the TRQs, which every one expected," one dealer said. "Feed makers were expecting prices to keep falling, but they didn't so they're in a mess. Let's see if the mood eases a little, because it is very tense right now." * Prompt feed wheat in leading grains port Tarragona was quoted at 212-214 euros/tonne, up 4-6 euros from Thursday and a rise of 12-14 euros in the past three weeks. GERMANY * Germany's market was supported by the rise in Paris plus background concern about South American drought but with a cautious tone ahead of the US Department of Agriculture crop reports on Thursday. * Standard new crop bread-quality wheat for January delivery was offered for sale up two euros at 201 euros a tonne with buyers at around 199-200 euros. New crop 2012 was only slightly below old crop, with buyers offering 195 euros a tonne. * "With the market now testing the 200 mark we could see some more farmer selling after producer caution in recent weeks," one German trader said. "The concerns about the dry weather in Argentina causing a new upward swing in grains prices are also supporting." * "But with people awaiting more news from Argentina and with caution ahead of the USDA on Thursday, there were enough reasons not to do any business today." * Short covering by animal feed makers was keeping feed wheat prices at close to milling wheat. * Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was also firm, offered for sale at 200 euros a tonne for nearby deliveries with buyers around 199 euros.