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PARIS: Euronext wheat futures jumped on Wednesday to a fresh 13-year high as comments by Russia’s agriculture minister on a grain export quota and possible hike in export duties rekindled concern about global availability.

March milling wheat, the most active contract on Paris-based Euronext, settled up 8.25 euros, or 2.9%, at 289.75 euros ($335.07) a tonne.

In closing trade it reached 290.00 euros, the highest price on a second-month position since February 2008 and slightly above a previous 13-1/2 year top last week.

Russia, the world’s biggest wheat exporter, may revise upwards a formula it uses to calculate its grain export taxes if international prices rise sharply, Agriculture Minister Dmitry Patrushev said.

Russia also plans to set grain export quotas for the first half of 2022, including for wheat, to secure domestic supply, Patrushev said.

Russia has been trying to curb domestic inflation but its intervention in grain exports has unsettled a wheat market facing reduced supply in other major export countries.

“We had an announcement effect with Russia and trading volumes surged this afternoon,” a futures trader said.

“The quota is a big issue but it will all depend on their export pace.”

The Russian government’s plans could have varying effects on export markets, according to traders.

“The news that Russia will set a grain export quota from January 2022 is fundamentally highly positive for EU exports. But the fear is that Russian traders will seek to sell and ship as much wheat as possible in November and December before the quota is imposed. This could weaken nearby demand.”

“Overall, in the EU there will be hope this plan will keep Russian wheat out of the Algerian purchase tenders in the first half of 2022.”

Standard 12% protein wheat for November delivery in Hamburg was offered for sale at about 2 euros under Paris December .

The Russian news helped Euronext rebound from a one-week low struck on Tuesday.

Russia’s comments also overshadowed revisions to French wheat supply and demand forecasts in which farm office FranceAgriMer reduced expected exports and raised projected stocks.

In oilseeds, a rally in U.S. soybeans after a surprise cut to the official U.S. harvest forecast helped Euronext front-month rapeseed rise to equal a record high of 705.00 euros previously struck in late October.

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