EU wheat dips on euro rise despite strong exports

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* May milling wheat, the most traded contract on the Paris-based Euronext market, was down 0.75 euros or 0.4 percent at 197.25 euros a tonne at 1421 GMT.

* March held up better, trading unchanged at 201.75 euros, as the front month continued to be supported by the covering of short-term physical deals that boosted premiums on the French cash market, traders said.

* The euro on Friday rose to its highest level against the dollar this year after a higher-than-expected inflation reading eased pressure on the European Central Bank to loosen monetary policy next week.

* "The euro has rebounded today with the economic data and that is preventing the market from rising further," one futures dealer said.

* Strong export activity, which helped push Paris wheat to seven-week highs this week, continued to underpin prices.

* The EU on Thursday reported the biggest weekly award of soft wheat licences with 932,000 tonnes.

* "When you see the volume of export licences this week, you can say that things are pretty good," the dealer said.

* The strong export data helped the market shrug off a lack of competitiveness of French wheat in a tender on Thursday by Egypt, the world's biggest importer of wheat.

* Egypt's main state buyer booked 295,000 tonnes of Russian and Romanian wheat for March 15-31 shipment.

* Positive export sentiment kept German prices steady.

* Standard milling wheat for March delivery in Hamburg was offered for sale unchanged at 3 euros over the Paris March contract with buyers seeking 1 euro over.

* "Ships have been loading this week in German ports for Saudi Arabia, Morocco and Iran. People are expecting more sales to Iran and there is market talk the Iranian state agency GTC may be buying up to 300,000 tonnes of German wheat from exporters in the near future," one trader said.

* Traders were also monitoring news from Ukraine, where political turmoil following the ousting of President Viktor Yanukovich raised uncertainty about economic activity in the major grain-exporting country. (Reporting by Gus Trompiz and Valerie Parent in Paris and Michael Hogan in Hamburg, editing by David Evans)

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