PARIS: Paris wheat futures rose on Thursday while physical premiums in western Europe held steady, with traders seeing scope for extra export demand as Russian shipments were expected to slow. A further rally in the euro to a new 2-1/2 year high against the dollar kept gains in Paris smaller than in Chicago, traders said.
March milling wheat on Paris-based Euronext settled up 1.50 euros, or 0.7%, at 207.25 euros ($254.11) a tonne. The market was still assessing the possible consequences of a Russian wheat export tax to apply from Feb. 15 to June 30 as part of measures to cool domestic food prices.
After already seeing the prospect of Russian farmers resisting selling grain at lower prices, traders said there were also signs of delays in obtaining export documents from Russian customs.
"If fear develops that Russian exports could get delayed until the export tax starts on Feb. 15, export demand could be switched to other regions in January," one German export trader said.
Despite a dwindling surplus in the European Union, some traders said higher prices could attract more supplies for exports.
"Periods of high prices have in the past shaken out surprising volumes of supplies from countries thought to be heavily sold out," the trader said.
"For Germany high prices can make it worthwhile to truck supplies from south Germany and other inland origins like the Czech Republic to the export ports."
Consultancy Strategie Grains raised its monthly forecast of soft wheat exports from the EU and Britain this season but saw limited scope for replacing Russia in the rest of the season.
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