Updates with settlement price after USDA report, adds French wheat cargo for Thailand

PARIS/HAMBURG, June 11 (Reuters) - Euronext wheat edged down on Thursday, breaking a two-day bounce as a widely followed U.S. government crop report supported expectations of ample global supply.

September milling wheat BL2U6 on Paris-based Euronext settled 0.1% down at €203.00 ($233.63) a metric ton.

The benchmark contract had risen in the two previous sessions to recover from a 3-1/2-month low of €199.50 on Monday.

In its monthly world crop report, the U.S. Department of Agriculture reduced its estimate of drought-affected U.S. wheat production, but nudged up its forecast of global wheat stocks next season.

In Europe, expectations of a good harvest hung over the market, with favourable June weather expected to limit the impact of a heatwave last month.

Commodity data firm Expana raised its forecast for European Union soft wheat production in 2026/27 on better prospects in Romania.

That followed an upward revision by grain trade association Coceral to its outlook for EU soft wheat output.

In Germany, the farm cooperatives association raised slightly its forecast of the country's 2026 wheat crop after beneficial rains, although the projection was still down 2.2% on last year's large crop.

Export demand remained thin with buyers continuing to delay purchasing in the hope that any U.S.-Iran peace deal will push commodity prices down, according to traders.

Traders said Ukrainian 11.5% protein wheat is currently seen as the cheapest at around $233 to $235 a ton free on board for July loading, but with French and Russian very close behind, both only about $1 to $3 above Ukrainian prices.

An Italian buyer was seeking about 10,000 tons of Black Sea feed wheat at around $242 a ton cost and freight included for July/August shipment, while a Greek buyer was seeking about 10,000 tons of feed wheat at around $240 a ton c&f for August shipment. In France, a vessel was due to load 60,000 tons of wheat for Thailand at Dunkirk, port data compiled by LSEG showed. GRAIN/SHP/FR

($1 = 0.8689 euros)