UPDATE 2-EU wheat up on USDA stocks data, euro fall

(Adds new comments, updates prices; previous PARIS)
MILAN, March 9 (Reuters) - European wheat futures rose on Friday,
accelerating gains in afternoon trade in step with Chicago after the U.S.
government trimmed its outlook for world wheat stocks, giving extra support to a
market already buoyed by a weaker euro.
* Impetus from U.S. Department of Agriculture data was limited, however, as
wheat stocks remained ample and with the USDA leaving unchanged its forecasts
for U.S. corn and soybean stocks, contrary to expectations for cuts.
* "The report is fairly neutral for cereals," Sebastien Poncelet of French
consultancy Agritel said. "For wheat it's based on growth in world trade, with
an increase in consumption that allows stocks to be trimmed a little."
* In monthly supply and demand estimates, the USDA cut its outlook for U.S.
wheat stocks at the end of this season to 825 million bushels, below the trade
consensus of 836 million, and lowered its world wheat stocks to 209.58 million
tonnes, against an average trade estimate of 212.608 million.

* Benchmark May milling wheat rose 4.75 euros or 2.33 percent to
208.50 euros a tonne by 1726 GMT, after trading up about 1.6 percent just before
the USDA report. The contract was still about 1 percent down on the week.
* A sharp fall in the euro, as the dollar was boosted by a strong U.S. jobs
report, also gave some support to Paris prices, making European wheat exports
cheaper on the world market.
* The USDA numbers were seen as more bearish for corn but supportive for
soybeans as the report cut Brazilian and Argentine soy crops by more than
expected.
* "It's bullish for soybeans, but this has been partly priced in during the
spectacular gains of the past few days," Poncelet said, referring to a soy rally
that has taken U.S. futures to five-month highs.
* European rapeseed futures added to a small morning rise in the wake of the
USDA data. May rapeseed was up 2.5 euros or 0.54 percent to 469.75 euros
a tonne.
* Other operators said Friday's report offered little fundamental direction,
with attention turned more towards March 31 data, which would notably include
updated estimates for spring planting in the United States.
* "Today is an intermediate supply and demand balance sheet," a French
trader said. "This gives the USDA the time to produce a more clear-cut balance
sheet at the end of March."

GERMANY
* German wheat rose in line with the rise in Paris and Chicago after the
USDA report with firm German feed wheat prices once more providing background
support.
* Standard quality milling wheat for March delivery in Hamburg was offered
for sale up one euro at 216 euros a tonne with buyers at 214 euros.
* "The USDA report was seen as generally bullish, especially the reduced
soybean crop forecasts for Brazil and Argentina," one German trader said. "This
is likely to continue to add support to global grain markets in coming weeks as
this will almost certainly add to U.S. export demand."
* Demand from animal feed producers kept German feed wheat prices around
milling wheat in parts of the country, repeating a pattern seen in past weeks.
* Feed wheat for nearby delivery in the South Oldenburg market near the
Netherlands was offered for sale at 216 euros a tonne with buyers at around 213
euros.
* The unexpectedly low feed grain exports in past weeks from the Black Sea
region have transferred buying interest back to EU feed wheat, with Spanish
purchasers recently buying German feed wheat.
* "The high feed prices means milling wheat is being sold for feed," another
trader said. "Demand from flour mills remains depressed because of poor profit
margins, but the high feed grain prices means milling wheat sellers are not
willing to cut prices."
* Germany's 2012 wheat crop will rise 6.3 percent on the year to 24.2
million tonnes from 22.7 million tonnes in 2011, the German Farm Cooperatives
Association said on Thursday in its first harvest forecast.
* "This estimate seems to confirm belief that German grain plants did not
suffer widespread damage during the cold snap in late January and early
February," the second trader said. "Overall the harvest outlook in 2012 remains
good."
* This belief was helping to keep German new crop prices well below old
crop.
* New crop milling wheat for September delivery in Hamburg was offered for
sale at 200 euros at tonne with buyers around 198 euros.

ITALY
* Wheat prices in Italy, a major grain importer in Europe, were flat on the
week in a balance between sluggish demand and thinning supplies of local wheat
and lower imports from Ukraine due to transport problems caused by cold weather,
traders said.
* Bread wheat was stable at about 220 to 223 euros a tonne for prompt
delivery without delivery charges, in line with prices set at a key weekly
session of Bologna's grain bourse on Thursday, they said.
* Concerns about dry spring which could damage grain crops also helped
support prices, traders said.
* Water level in main northern lakes and other basins was below seasonal
average after dry winter, the Italian association of irrigators ANBI said. A
rare phenomenon of snow evaporating rather than melting after a sudden
temperature spike in the Alps was also adding to spring drought worries, ANBI
said.

* Prices as of 1724 GMT

Product Last Change Pct Move End 2011 Ytd Pct

Paris wheat 220.50 7.00 +3.28 202.50 8.89
London wheat 167.00 1.80 +1.09 153.65 8.69
Paris maize 207.75 1.75 +0.85 196.75 5.59
Paris rape 469.75 2.50 +0.54 438.25 7.19
CBOT wheat 642.00 11.50 +1.82 652.75 -1.65
CBOT corn 655.00 10.00 +1.55 646.60 1.30
CBOT soy 1332.25 -0.25 -0.02 1198.50 11.16
Crude oil 107.66 1.08 +1.01 98.83 8.93
Euro/dlr 1.31 -0.02 -1.15 1.30 1.26
* Paris futures prices in Euros per tonne, London wheat in pounds per
tonne and CBOT in cents per bushel.

(Reporting by Gus Trompiz in Paris, Michael Hogan in Hamburg, Svetlana
Kovalyova in Milan; Editing by Jane Baird)