PARIS, May 21 (Reuters) - European wheat edged lower on Thursday, caught between near-stable wheat output forecasts, reports of strong demand for competitively priced European wheat, and a further decline in U.S. markets.

Benchmark September milling wheat BL2U6 on Paris-based Euronext, closed 0.5% lower at €215.75 a metric ton, having moved between €213.75 and €217.25 during the session.

The International Grains Council (IGC) kept its global 2026/27 grains output forecast unchanged on Thursday at 2.414 billion metric tons, down 3% from a year earlier and the first decline in four seasons.

Unconfirmed market talk was of west European wheat sales, possibly including French, German and Polish, to unusual destinations including Mexico, supporting prices.

"There are rumours about EU wheat sales to Mexico in the market but they remain rumours and I have not spoken to anyone with first-hand knowledge of recent EU wheat sales to Mexico," one German trader said.

Another trader reported sales of several cargoes of French, German and Polish wheat in the past two weeks, for Mexico and Asia, for shipment between July and December.

"Russian wheat sales to Mexico are also spoken of,” the German trader said.

Another German trader added: "U.S. wheat is looking very expensive currently and market prices could make both Russian and west EU sales to Mexico feasible. It is possible some sales were made to Mexico from both the west EU and Russia in past weeks, with the weakness in the euro helping the EU."

Traders said U.S. soft red winter wheat for June shipment from the U.S. Gulf was currently around $270-$275 a ton FOB depending on currency and Chicago futures moves.

This was way above Russian 11.5% wheat at around $237-$241 a ton FOB and French at around $242-$245 a ton FOB, also depending on currency and Euronext moves.

The price gap prompted U.S. buyers to book several purchases of Polish wheat in the past weeks, traders said.

Prices at 1640 GMT
	Last	Change	Pct Move
Paris wheat BL2U6	215.75	-1.00	-0.46
Paris maize EMAQ6	221.00	2.25	1.03
Paris rapeseed COMc1	525.25	-1.50	-0.28
CBOT wheat Wv1	652.00	-8.50	-1.29
CBOT corn Cv1	466.00	0.25	0.05
CBOT soy Sv1	1197.00	-2.75	-0.23
Euro/dlr EUR=	1.16	-0.003	-0.28
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne