Wheat prices in western Europe rose on Wednesday, supported partly by concern about winter damage to European crops.

* The most active May milling wheat contract in Paris closed 2.50 euros higher at 208.25 euros a tonne.

* Tuesday's strong rise in U.S. wheat to a three-week high helped push the contract clear of previous resistance at 204-205 euros.

* "In Europe, there is a sort of general concern about the new crop," one dealer said. "In France we're still trying to measure the impact of the recent freezing spell."

* Losses to soft wheat area in eastern and northeast France could represent about 1 million tonnes of potential output, analysts Agritel and Offre & Demande Agricole said.

* The initial estimates came as operators said farmers were reporting some winter damage to the main soft wheat crop, after concerns had previously centred on durum and barley plants.

* But traders cautioned it was too early to have a clear picture with plants just emerging from the winter period.

* "We're going into a weather market phase where we're pricing things that we don't have a grasp on," one trader said. "It's all 'potential' damage and 'potential' winterkill."

* Wheat prices were also underpinned by sustained export demand, with port activity in France picking up after a spate of reported sales to importers like Algeria.

* An easing in the euro to below $1.34 gave also helped export prospects after the currency's rally in the past week to levels last seen in early December, raised some doubts about the competitiveness of French and German wheat.

* Talk that Iran was considering importing 3 million tonnes of wheat from India, as it works against the impact of Western sanctions, continued to be mentioned by traders, although they said bullish impact on the market could be limited as India would not normally release such export volumes.

* May feed wheat in London ended 0.40 pounds higher at 167.40 pounds a tonne.

* "With all the focus currently on the old-crop tight supply issues, it is still worth remembering that current estimates point to increases in grain and oilseed plantings around the world for harvest 2012/13," Britain's Home-Grown Cereals Authority said on Wednesday.

* "Spring weather will be critical to assess whether or not the increase in area will translate into an increase in production," HGCA said in a market note.

* European rapeseed futures rose to a new high for the benchmark contract since early June, on the back of a fresh five-month peak for U.S. soybeans.

* May rapeseed was up 2.50 euros or 0.55 percent at 459.00 euros a tonne, after earlier reaching 459.50 euros.

Source - http://af.reuters.com/