PARIS: European wheat prices fell in volatile trade on Tuesday as fears eased that Russia, one of the world’s largest wheat exporters, would introduce export curbs but the drop was limited by technical supports.
Benchmark December milling wheat on Paris-based Euronext unofficially closed down 1.6 percent to 200.00 euros a tonne, down 2.9 percent this week.
“It seems the market wanted to correct an exaggerated rise as it anticipated export restrictions in Russia but the fundamental elements did not change. Russian exports are running at a frenetic pace,” the trader said, adding the government “can still take action.”
Russia’s agriculture ministry does not see a need to impose export duty or curb grain exports in any other way, it said in a statement after a meeting with exporters on Monday.
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The news also pushed US markets which dropped nearly 3 percent as they reopened after the US Labor Day holiday on Monday.
A sharp expected fall in Russian wheat production and fast exports at the start of the season have fuelled speculation that the world’s top wheat supplier will limit flows.
Traders were still awaiting details on Argentina’s plan to impose an export tax on grains as part of emergency budget measures.
This could reduce seasonal competition from Argentine wheat in Algeria and reinforce French dominance in its main overseas market but the concrete impact was still unclear, traders said.
The high volatility in prices on the futures market was hampering activities on the French cash market, brokers said.
Source: Brecorder
