UPDATE 1-European wheat futures edge higher in light trade

(Updates prices)
AMSTERDAM, Aug 20 (Reuters) - European milling wheat futures edged higher on
Monday in low volumes, as the market took a breather from last week's rally
supported by strong export demand and tightening global supplies, traders said.
* "For the moment there is no tender in the pipeline, the size of the
(European wheat) crop is known, the Russian export news was mostly priced in
last week, so we are consolidating," one trader said.
* Russia's two main grain market analyst groups cut their 2012 grain and
wheat harvest forecasts on Monday after the start of harvesting campaigns in
Urals and Siberia regions showed weak crop prospects.
* By 1502 GMT, front-month November on European milling wheat futures
<0#BL2:> was 0.1 percent higher at 263.00 euros a tonne. One trader put the
resistance at 265-266 euros.
* Comments by Russia's farm minister on Friday saying all instruments to
control local grain prices were on the table, except an embargo on exports,
drove prices higher on wheat markets from Chicago to Paris. Operators saw a
signal that Moscow did not rule out export curbs.
* "There are still many rumours about the situation in Russia and the U.S,"
one trader said. "People still have a hard time believing information out of
Russia, even if they cut their estimates."
* Operators also pointed to the dull U.S. wheat market, which they said was
also pausing after last week's run, and shrugging off a rise on corn and soybean
futures.
* Traders expected Morocco to return to the market to buy wheat soon,
possibly this week.
* "Egypt came (to the market) twice this month and Algeria bought over
350,000 tonnes last week. Now we are waiting for Morocco. They will have to come
back," another trader said.
* But the Moroccan government, facing its biggest wheat import campaign this
year in three decades, said last week it would not tap international soft wheat
markets before the bulk of its domestic harvest is sold.

GERMANY
* German prices were strengthened by the rise in the Paris market with
domestic attention focused on rapid progress being made with the German wheat
harvest.
* Standard milling wheat for September delivery in Hamburg was offered for
sale up one euro and holding over Paris at 268 euros a tonne with buyers at
around 267 euros.
* "Attention is on the progress and quality of the German wheat harvest
which has made very fast progress in the last week," one German trader said. "We
have had mostly sunny weather for a week with high temperatures which have
together enabled a big acceleration in harvesting after a slow start."
* Germany had an exceptionally wet and cool start to the summer, which
delayed the harvesting start.
* "Wheat harvesting is finished in many areas in the south and centre of the
country," another trader said. "The hot weekend weather meant wheat was dry and
rapid progress was made in the remaining northern regions."
* "I expect the harvest to be completed in the coming week."

* Prices as of 1530 GMT

Product Last Change Pct Move End 2011 Ytd Pct

Paris wheat 263.25 0.50 +0.19 195.25 34.83
London wheat 202.00 1.75 +0.87 153.65 31.47
Paris maize 258.25 1.25 +0.49 197.25 30.93
Paris rape 513.00 2.25 +0.44 421.50 21.71
CBOT wheat 879.00 4.50 +0.51 671.25 30.95
CBOT corn 814.75 16.25 +2.04 654.75 24.44
CBOT soybeans 1696.25 25.25 +1.51 1207.75 40.45
Crude oil 95.71 -0.30 -0.31 98.83 -3.16
Euro/dlr 1.23 0.02 +1.88 1.30 -4.73
* All grain and oilseed prices for second position. Paris futures prices in
Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.

(Reporting by Sybille De La Hamaide in Paris, Michael Hogan in Hamburg and
Ivana Sekularac in Amsterdam; Editing by Alison Birrane)