* Previous losses were excessive, traders say

* EU wheat exports still brisk despite stronger euro * U.S. grains bolstered by weak dollar

By Svetlana Kovalyova

MILAN, Oct 5 (Reuters) - European wheat futures jumped on Tuesday on the back of strong gains in U.S. grain futures and other commodities, shrugging off a rally in the euro that could hamper Europe's wheat competitiveness on world markets.

Benchmark November on Euronext milling wheat futures closed at 205.75 euros ($283.3) a tonne, up 6.50 euros or 3.26 percent after hitting an intraday high of 206.00 euros. The next resistance level is estimated at 208 euros.

"We are correcting an excessive slump on the market in a move that could also be excessive," a trader said.

On Monday the benchmark wheat contract in Paris hit a two-month low of 196.25 euros a tonne, driven by a slide in U.S. grains due to raised estimates of corn supply, an initial reaction to Canadian crop data and technical elements.

Some operators pointed out that many fundamentals remained bullish, including brisk export demand for French grain after drought-hit Russia froze exports.

"Despite the high level of the euro, if you look at the incessant stream of loadings, it's clear that importers continue to favour French origins," a trader said.

U.S. corn, wheat and soybeans rose on Tuesday as the U.S. dollar slumped to an eight-month low and crude oil prices climbed, helping grains claw back some of last week's losses.

Expectations that the United States would increase the money supply boosted the euro, making commodities priced in U.S. dollars more appealing.

The market will remain volatile until the release on Friday of the U.S. Department of Agriculture (USDA) world supply and demand report and U.S. crop outlook, with the yield estimate for the U.S. wheat crop closely watched, traders said.

Traders also referred to a nationwide rolling strike due to take place in France on Oct. 12. They said if loadings at ports were likely to remain largely unaffected, transport by train or trucks to the ports could be difficult.

"We cross fingers that it won't last," a trader.

In London, November feed wheat futures were up 5.95 pounds at 155.00 pounds a tonne.

The UK's 2010 wheat harvest is estimated at 14.8 million tonnes, up 5 percent on the year, Britain's farm ministry reported on Tuesday.

Germany's market rose sharply, supported by the rise in Paris, coupled with belief that recent price falls were overdone, traders said.

Standard new crop bread-quality wheat for October delivery in Hamburg was offered for sale up 7 euros at 210 euros a tonne with buyers at 206 euros.

"The rebound in Paris supported prices coupled with some arguments that the sharp fall in European prices was overdone in view of the continuing tight supply outlook," one trader said.

"There was also some background nervousness about the USDA on Friday indicating that the U.S. corn crop could be smaller than expected."

Repeated rain since early August has damaged the quality of Germany's wheat crop, and a much larger volume than usual is likely to be only feed quality.

The poor crop quality in Germany remains a long-term supportive factor," a trader said.

Wheat prices in Italy fell, catching up with previous losses on major international markets, traders said.

Standard quality bread wheat fell 7 euros on the week to 227-230 euros a tonne for prompt delivery, including delivery charges, while higher grade bread wheat dropped 5 euros to 238-243 euros a tonne, according Milan's grain bourse data. EU milling wheat imported into Italy fell 7-15 euros on the week, depending on quality, while U.S, and Canadian imports lost 8 euros, the data showed.

* Prices as of 1646 GMT Product Last Change Percent Move End 2009 Ytd Percent Paris wheat 205.75 6.50 +3.26 131.25 56.76 London wheat 155.00 5.95 +3.99 106.50 45.54 Paris maize 193.75 3.75 +1.97 135.00 43.52 Paris rapeseed 373.50 1.75 +0.47 287.50 29.91 CBOT wheat 664.50 17.25 +2.67 541.50 22.71 CBOT corn 487.50 16.00 +3.39 414.50 17.61 CBOT soybeans 1069.75 15.75 +1.49 1039.75 2.89 CBOT rice 12.45 0.24 +1.89 14.57 -14.55 Crude oil 82.68 1.21 +1.49 79.36 4.18 Euro/dlr 1.38 0.01 +1.09 1.43 -3.40 * CBOT contracts in cents per bushel except rice which is in dollars per hundredweight. Paris wheat in euros a tonne and London wheat in pounds per tonne

(Reporting by Valerie Parent in Paris, Michael Hogan in Hamburg, Svetlana Kovalyova in Milan, editing by Jane Baird)