Wheat prices set course for a firm end to the week, with Paris's November lot within an ace of a closing high, as Pakistan questioned export plans and Rabobank undercut other analysts with its latest global forecast.

Pakistan said that, follow its devastating floods, it was likely to ditch plans to export 2m tonnes of wheat.

"It's not that much on its own, but it adds to the overall picture of tighter export supplies," a UK grain trader told Agrimoney.com.

Meanwhile, further rain in Germany and the UK deepened concerns over harvest delays, and raised the likelihood of downgrades of milling wheat to feed quality.

"Usually you get as much milling wheat as you like out of Germany, but that doesn't look like being the case this time," the trader said, also noting a rise in UK milling premiums.

USDA 'overstatements' 

Indeed, Rabobank highlighted that it was "sensitive to further yield and quality setbacks during harvest in Germany" in a report in which it cut a further 5m tonnes from its forecast for world wheat output in 2010-11.

At 639m tonnes, the forecast was lower than the International Grains Council's 644m-tonne estimate on Thursday, and the US Department of Agriculture's 645.7m-tonne figure.

"We believe the USDA is likely overstating production in Russia, Australia and the EU," said a report from the bank's London office.

The USDA's Moscow bureau late on Monday slashed its view on Russia's wheat production to 41m tonnes, below the department's official 45.0m-tonne estimate.

Rabobank added that "there remain significant downside risks to the 12m-tonne forecast for Argentina, based on ongoing dry conditions in the western growing regions".

Estimates raised 

The bank hiked its estimates for wheat prices in Chicago by up to $1.50 a bushel over the next four quarters, foreseeing that the entire grains complex had entered a period of "substantially higher volatility", marked by "significantly higher prices than we have seen over the past two seasons".

In Chicago, September wheat stood 1.0% higher at $6.60 a bushel in late deals.

In Europe, Paris wheat for November finished up 2.0% at E220.5 a tonne, E3 from its best-ever close, set three weeks ago.

London feed wheat added 2.7% to �152.00 a tonne.