PARIS, Jan 5 (Reuters) - Wheat futures on Euronext edged down for a second session on Monday, with hefty global supply weighing on the market, while rapeseed rose sharply in a technical rebound following a slide last month, dealers said.
March milling wheat BL2H6, the most-active position on Euronext's Paris-based futures, settled 0.5% down at 188.25 euros ($220.53) a metric ton.
With Argentina's farmers wrapping up what is forecast to be a record-breaking wheat harvest, the focus remained on ample availability in major exporting countries.
Competition from Argentina has raised doubts about western European export prospects in the new year, though an easing in the euro EUR= against the dollar on Monday helped underpin prices.
Chicago wheat Wv1 added 1% in a rebound from a two-month low on Friday, with dry conditions in part of the U.S. winter wheat belt encouraging the bounce. GRA/
A cold spell in western Europe was not causing concern, with single-digit negative Celsius temperatures on plains not severe enough to damage dormant crops, dealers said.
Snow on Monday that is forecast to be followed by rain later this week should also provide beneficial soil moisture after a dry December.
In rapeseed, February futures COMG6 on Euronext climbed 2.4% to 462.75 euros a ton.
The December drop on rapeseed, which took front-month prices to a 16-month low last Monday, encouraged bargain-buying by investors returning from year-end holidays, dealers said.
"Crushing margins are very attractive since the sharp fall," one Euronext dealer said of rapeseed, which is crushed to make oil for cooking and biofuel.
A report that a vegetable oil factory owned by global agricultural merchant Bunge BG.N in eastern Ukraine had been damaged during a Russian attack also lent support to rapeseed, dealers said.
($1 = 0.8536 euros)
(Reporting by Gus Trompiz; Editing by Alexandra Hudson)
((gus.trompiz@thomsonreuters.com))
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