* Trade sources say Brazil reacts to lower Argentine supply
* One cargo of German wheat to load in Hamburg - analyst
* Others doubtful given high German prices
(Adds analyst comments, background)
HAMBURG/PARIS, Nov 23 Brazilian buyers may have
made a rare purchase of German wheat in response to lower supply
from its main source Argentina, European traders and analysts
said on Friday.
Argentina's wheat crop has suffered from months of heavy
rain, reducing yields and threatening quality at a time when
poor weather has reduced supply in other exporting countries.
"We now hear and have confirmation of at least one vessel of
German wheat that will load shortly for Brazil," Geneva-based
grains analyst Noel Fryer said a note.
Traders said Brazilian interest in high-quality German wheat
made sense but cautioned that sales would have to be confirmed.
"There is a lot of market talk about this but details are
unclear and it is still unconfirmed," one trader said.
"It looks like Brazil is not going to get enough
high-quality wheat from Argentina this year and is casting
around for alternative supplies."
Another trader said he believed two shipments of German
wheat of unknown size had been sold for January/February
shipment for blending with South American wheat in Brazil to
bring the South American wheat up to milling standards.
One European analyst, meanwhile, cited an initial shipment
of 50,000 tonnes of German wheat to load soon in Hamburg.
Argentina has also made wheat sales to other customers,
absorbing some of its limited surplus this season.
"Argentina's export surplus is only about 4 million tonnes.
They went and sold to further-away destinations whereas their
giant neighbour (Brazil) needs 4 million tonnes," Freyer said.
Weather-reduced supply in rival exporters like Argentina,
Russia and Ukraine has boosted demand for European wheat in
recent weeks, with weekly European Union export licences setting
the highest volume in two years last week.
But other operators doubted whether much German wheat would
be sold to Brazil given high prices in Germany coupled with
transatlantic shipping costs.
Prices for standard German wheat in Hamburg are currently
about 10 euros a tonne over Paris levels. Paris January wheat
was at 270 euros a tonne around 1700 GMT on Friday.
(Reporting by Michael Hogan and Valerie Parent; Writing by Gus
Trompiz; Editing by Anthony Barker)