PARIS, May 23 (Reuters) - Euronext wheat fell on

Thursday, moving away from a 10-month peak as the market

assessed rain chances for parched crops in top exporter Russia

while monitoring damp conditions in western Europe.

    September wheat BL2U4 on Paris-based Euronext was down

1.0% at 256.75 euros ($277.96) per metric ton by 1511 GMT. On

Wednesday it had climbed to 264.50 euros, the highest

front-month price BL2c1 since last July.

    Chicago wheat Wv1 also edged down after a 10-month top in

the previous session. GRA/

    Reduced forecasts for Russia's wheat crop following drought

and frosts have fuelled a steep price rally this month. The

International Grains Council on Thursday joined other observers

in cutting sharply its outlook for Russian production.

    The market is monitoring weather charts suggesting some rain

relief in the far south of Russia in the coming two weeks but

with other zones set to stay dry.

   “Markets seem to be pausing a bit with a mood of fatigue

after the recent rises,” one German trader said.

    The surge in wheat prices has swelled their premium over

corn, encouraging some profit-taking as traders anticipated some

livestock feed demand shifting towards corn.

    Spanish buyers this week booked 110,000 tons of U.S. corn in

a possible sign of this shift.

    “Spanish feed makers say they can currently buy corn at

about 214 euros a ton for nearby delivery to Spain including

shipping (CIFFO), at least 10 euros a ton cheaper than EU feed

wheat,” the trader said.

    Export demand for wheat also remained thin after the price

rally.

    Russian wheat prices continued to rise but remain well below

EU levels.

    Russian 12.5% protein wheat for June Black Sea shipment was

on Thursday at around $247-$249 a ton FOB, up from $245-$246 on

Wednesday.

    In France, wheat export loadings were limited, with barley

shipments to China again providing main volumes for cereal

exports, data compiled by LSEG showed. GRAIN/SHP/FR

    There was also concern about downpours in France and

Germany, the EU's top two wheat producers, after heavy rain

already disrupted the growing season.

    Germany's wheat crop will shrink by 5.6% this year, the

country's association of farm cooperatives said on Thursday.

    However, damage from the latest rain in Germany may be

limited to the south, trader said.

    ($1 = 0.9237 euros)

(Reporting by Gus Trompiz in Paris and Michael Hogan in

Hamburg; Editing by Jan Harvey)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters

Messaging: gus.trompiz.thomsonreuters.com@reuters.net))