EU wheat survives dry spell but more rain needed

* French, German, UK, Polish wheat doing well

* Recent rain helps after prolonged dryness

* More rain needed in spring to protect yields

HAMBURG, April 17 (Reuters) - Wheat crops in the European Union's top four producing countries have survived a dry start to the spring, but more rain is needed in coming weeks, traders and analysts said on Thursday.

"The outlook is overall positive for the new crop this year, and good export supplies are nearing," one German trader said.

French analyst Strategie Grains on Thursday forecast the EU's 2014 soft wheat crop will rise 2 percent or 2.1 million tonnes on the year to 137.2 million tonnes.

"Crops are weeks in advance of their normal growth stage at this time of year in several countries because of the mild winter," another trader said. "Recent rain was just about enough to prevent major damage after dryness in early spring, but more rain is urgently needed in coming weeks."

In France, the largest EU wheat producer, the 2014 harvest will be 36.71 million tonnes, hardly changed on last year's 36.75 million tonnes, Strategie Grains forecast.

Some wheat, mainly in east France, is starting to feel the impact of several weeks of dryness, but good water reserves thanks to a wet winter and forecasts for rain next week could limit the damage.

Some 10 percent of winter crops have been hit by dry weather, said Pascal Prot, the head of Vivescia, one of one of France's largest grain cooperatives. "We need rain," he added.

But relief could be on the way, with light showers forecast for most of France from Sunday until the end of next week.

In Germany, the second-largest producer, a slightly smaller crop is expected, but recent rain helped crops after a prolonged dry period.

Germany's farm cooperatives forecast its 2014 wheat crop would fall 1 percent on the year to 24.74 million tonnes, a 100,000 tonne increase from their March forecast. Germany's leading grain trader, Toepfer International, forecasts 23.95 million tonnes.

Toepfer said in a report that welcome rain had fallen in north Germany but that south and west Germany was still dry and needed more rain. No damage to crops has yet been noted.

PROSPECT OF BIG BRITISH CROP

Wheat in Britain, the third-largest producer, appears in good shape this year after a mild, wet winter, with production expected to rise sharply following an increase in planted area.

"I think conditions are generally favourable. There don't seem to be any concerns at the moment," said Amandeep Kaur Purewal, an analyst at the Home-Grown Cereals Authority (HGCA).

British farmers have returned to wheat this season following favourable weather during the autumn planting season. Heavy rains in autumn 2012 had disrupted winter wheat plantings for the summer 2013 crop.

The HGCA said wheat plantings in England and Wales rose by 19 percent on the year to 1.815 million hectares. They had their wettest winter since records began in 1766, but crops were already sown when the rains came.

Toepfer International, which has extensive interests in Britain, forecast the UK 2014 crop would rise by a sharp 26.7 percent on the year to 15.1 million tonnes.

In Poland, the fourth-largest producer and an expanding exporter, parched wheat crops received welcome rain in recent weeks.

"Decent rainfall has improved the condition of winter crops across the country," Wojtek Sabaranski of analysts Sparks Polska said. "So in most regions of the country, crops are in good condition."

Crop growth is about 20 days in advance of growth in average years after the mild winter, he said.

Poland's total wheat crop will rise 2 percent on the year to 9.8 million tonne, Sparks Polska forecasts.

"If weather conditions remain favourable in the weeks ahead, even higher wheat output in the country is likely," Sabaranski said. (Reporting by Michael Hogan in Hamburg, Sybille de La Hamaide in Paris and Nigel Hunt in London; editing by Jane Baird)