By Valerie Parent and Gus Trompiz

PARIS, Nov 25 (Reuters) - Western European wheat prices extended gains on Thursday, supported by continued weakness in the euro, but trade was curbed by the holiday closure of U.S. markets.

The euro traded near two-month lows earlier as investors remained nervous about the debt problems of euro-zone countries, although it later saw a technical rebound.

A lower euro makes grain from euro-zone exporters like France and Germany more competitive in dollar-priced international markets.

Trading in Chicago grain futures will resume on Friday but for a shortened session.

Benchmark January milling wheat in Paris closed up 2.75 euros or 1.27 percent at 218.75 euros a tonne, supported by the euro and a higher close in Chicago on Wednesday.

The contract was approaching resistance between 219 and 220 euros, traders said.

"Chicago rising up until yesterday, the euro staying weak plus oil being higher are enough for us to rise," one futures dealer said.

The European Union announced the results of the first round of a tender to sell stocks, mostly feed barley, from its intervention stores, approving the sale of 223,403 tonnes of grain.

The tender was seen as important in easing supply and demand tensions after a severe drought in the Black Sea region.

The overall volume sold on Thursday did not stir the market but some operators stressed interest in the tender, with all 15 countries with intervention grain receiving bids and with five of them seeing bids for all available volumes.

INTERVENTION TENDER SALES

Feed wheat futures in London were higher in thin volume, tracking gains in Paris. January feed wheat rose 2.50 pounds or 1.46 percent to 174.00 pounds a tonne.

Dealers said the market remained underpinned by the strong pace of exports which could lead to supply tightness later in the season.

"EU (French and UK) exports continue at a pace defying the balance sheets," UK merchant Gleadell Agriculture said in a market report on Thursday.

"Domestically, the market has seen 'topping up' as end-users look to cover pre-Christmas requirements, although post-Christmas buying interest remains patchy, with most believing good volumes are still to be covered, into an ever-decreasing availability," the report added.

Weekly EU data showed that the bloc cleared licences to export 351,000 tonnes of soft wheat, keeping the volume so far this season well ahead of year-earlier levels.

Germany's market was firm, helped by the rise in Paris and the euro's continuing weakness but with the U.S. public holiday putting a brake on trade.

Standard bread-quality wheat for November delivery in Hamburg was offered for sale up two euros at 222 euros a tonne with buyers at 219 euros.

In the first of the EU sales of German intervention barley, the bloc sold 86,883 tonnes at a minimum price of 179 euros a tonne, with bids received for 336,708 tonnes.

"This is a significant volume with prices about the same as the current Hamburg barley price of around 190 a tonne and Netherlands price of 193-194 a tonne," one trader said. "The award was low in tonnage terms in view of the large number of bids received."

Germany has the largest amount of intervention grain stocks in the EU, with a total of 1.1 million tonnes.

Another trader said: "The EU will have to cut the price if it wants to dispose of the full 1.1 million tonnes of barley it is offering in Germany, but it has months to go and may not cut the price until well in the new year."

In Italy, milling wheat prices rose 2 euros on the week on the back of steady demand and tightening supplies of local grain, traders said.

Base milling quality soft wheat was traded at 221-224 euros a tonne for prompt delivery without delivery charges, while higher grade wheat was quoted at 230-234 and 232-239 euros a tonne, depending on protein content and other features, according to data from Bologna's weekly grain bourse.

Imported wheat was flat on the week after falling in the previous session and maize fell 2 euros on the week to 212-213 euros a tonne, including delivery charges, the data showed.

Rainy and cold weather in the past few days has triggered delays in wheat sowing but it was too early to talk about possible negative impact on the next season crops, traders and Italy's biggest farmers association Coldiretti said.

(Additional reporting by Nigel Hunt in London, Michael Hogan in Hamburg and Svetlana Kovalyova in Milan)