AMSTERDAM, Aug 6 (Reuters) - European wheat futures were lower in step with U.S. prices on Monday as operators were cautious ahead of a series of closely watched crop updates this week. * The fall in Paris was marginal as weather-linked supply concerns, underlined by a cut by a leading Russian analyst's forecast of the country's wheat crop, kept the market well supported. * Benchmark November milling wheat was down 0.75 or 0.29 percent at 260.25 euros a tonne by 1127 GMT. The contract continued to face resistance at 262 euros, a level it has failed to break in the past two weeks, traders said. * "We know we're going to have a lively week so that's maybe making people cautious," a futures dealer said. * Grain operators are awaiting weekly U.S. government crop ratings later on Monday to see if rain in the past week has relieved soybean crops during a severe drought, ahead of monthly crop estimates on Friday. * The market will also be watching for the outcome of a meeting on Wednesday of a food security body in Russia that may shed more light on the country's drought-affected harvest. * A reduction by analyst SovEcon to its outlook, cutting its wheat crop forecast to 40.5-43 million tonnes from 46.5 million previously, highlighted deteriorating crop prospects in Russia that have fuelled talk of possible export curbs. * In France, showers in northern areas at the weekend and more unsettled weather on Monday hampered harvesting and revived concerns about crop quality. * But drier, hotter conditions forecast from Tuesday could help fieldwork accelerate in northern grain belts. GERMANY * German prices were weakened by the fall in Paris but continued to retain a hefty premium over the Euronext market on export hopes and harvest concerns. * Standard milling wheat for September delivery in Hamburg was offered for sale down 2 euros but well over Paris at 265 euros a tonne with buyers at around 263 euros. * "The export outlook for German wheat remains positive with the harvest problems in Russia becoming more apparent," one trader said. * "The euro's early-week strength is disappointing but there is some hope that some of the Saudi Arabian wheat purchases over the weekend could be sourced from Germany." * Saudi Arabia bought 290,000 tonnes of hard wheat of 12.5 percent protein from the EU, Australia, North and South America with the seller having the option of selecting origin. * German wheat plants now need more sunny, warm weather after the rainy, cool summer start. After a dull, wet weekend, much of Germany had rain on Monday. Widespread showers are also forecast for Tuesday, but with drier weather from Wednesday to Friday. * Feed wheat prices were dipping below milling wheat as demand from feed makers fell, traders said. * Feed wheat for August delivery in the South Oldenburg market close to the Netherlands was below Hamburg milling wheat, offered for sale at about 263 euros. Continued demand from compound feed producers in recent months had kept feed wheat above milling prices. SPAIN * The price of wheat in the key port of Tarragona fell by about two euros a tonne to trade around 268 euros on Friday, holding at high levels that prohibited much trade, according to agricultural exchange Mercolleida. * Essential purchases of French wheat were being registered, and wheat was also being offered in the northern region of Burgos as the harvest came to a close. * One trader said that August would be a very quiet month in Spain with many traders away from their desks, with some movement possible depending on Friday's USDA report. * Prices as of 1140 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 260.25 -0.25 -0.10 195.25 33.29 London wheat 190.00 -2.00 -1.04 153.65 23.66 Paris maize 253.00 -8.00 -3.07 197.25 28.26 Paris rape 494.25 -4.00 -0.80 421.50 17.26 CBOT wheat 889.00 -2.25 -0.25 671.25 32.44 CBOT corn 805.25 -4.75 -0.59 654.75 22.99 CBOT soybeans 1624.25 -32.00 -1.93 1207.75 34.49 Crude oil 91.14 -0.26 -0.28 98.83 -7.78 Euro/dlr 1.24 0.03 +2.10 1.30 -4.53 *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.

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