* The euro rose following a 17-month low against the dollar on Friday, when credit rating agency Standard & Poor's downgraded nine euro-zone countries, including France, but stayed below $1.27, partly due to stalled talks on Greece's debt. * A softening euro helped European milling wheat in Paris stay in positive territory on Friday, even as Chicago crop futures fell sharply on a corresponding rise in the dollar plus improving crop weather in Argentina. * March milling wheat closed up 1.25 euros or 0.63 percent at 198.25 euros a tonne. It continued to face resistance around 200 euros, with a key level seen at 203.50 euros, the peak of a rally at the turn of the year. * "Our competitiveness has been reinforced, as shown by sales secured with Egypt and probably Algeria," French grains consultancy Agritel said in a note. "The impact of the price fall in Chicago is thus being limited by the euro factor and this could continue this week." * French wheat scored its third straight tender sale to Egypt on Friday and was also seen as in contention to claim part of a major purchase by Algeria last week. * The upturn in French exports has also been supported by a flagging pace of shipments from Russia after it dominated the early part of the season. * In other export news, Tunisia issued an international tender to buy 125,000 tonnes of durum wheat. * Weather worries in big exporting countries may provide broad support this week to grains, after they were dented last week by bigger-than-expected supply estimates from the US government and by forecasts for improved crop weather in Argentina. * A drought in Argentina will worsen this week as rain will not be enough to revive parched corn and soy crops, local meteorologists said. * Colder weather in France since the end of last week was not seen as threatening crops as temperatures were not severe enough, with the cold rather seen as potentially beneficial for strengthening plants after mild conditions since the autumn. * In oilseeds, rapeseed futures were little changed, with February closing down 0.50 euros or 0.11 percent at 450.00 euros a tonne. * The weak euro and tight supply in Europe helped rapeseed hold up better last week than their lead market, US soybeans, which were hit by bearish US government estimates and the return of rain to drought-hit Argentina. GERMANY * Germany's market was little changed on late Friday levels, with support coming from a stable Paris market, export-boosting weakness in the euro and firm feed wheat demand. * Standard bread-quality milling wheat for January delivery in Hamburg was offered for sale unchanged at 202 euros a tonne with buyers at around 200 euros. * "The weaker euro will make the export outlook more positive at a time when competition from rivals like Argentina is flagging," one trader said. "But the lack of a lead from US markets today means some people are restrained in trading." * Short covering by animal feed makers was keeping German feed wheat prices at the same level or even higher than milling wheat, continuing a pattern seen last week. * Feed wheat for delivery up to June in the South Oldenburg market near the Netherlands was offered for sale at 203 euros a tonne with buyers around 201 euros. * "The new year holiday season in the Black Sea region has kept sales offers of feed wheat low, which seems to be keeping spot demand for feed wheat high," another trader said.