European wheat prices extended a retreat on Friday from the previous session's 7-month high but remained underpinned by signals that Russia would curb exports following the collapse of its currency. There was further confirmation on Friday that Russia is restricting shipments, with the country's Association of Grain Exporters saying it had stopped buying grain for export.
By 1614 GMT January on Euronext's Paris-based milling wheat futures was down 2.00 euros or 1.0 percent at 198.25 euros. The contract peaked at 209.25 euros on Thursday, its highest level since May 6.
"The market ran ahead of itself yesterday so it makes sense to cool off a bit," a Euronext trader said. "With the year-end holidays plus the usual winter logistical slowdown in Russia, we're going to have wait until early next year to see if export demand shifts to other origins."
British merchant Openfield said in a market note on Friday that the main reason for this week's rise was confirmation of Russia's intention to curb exports without an outright embargo.
"With Russia effectively out of the market and EU sales ahead of the curve the global milling wheat market remains tight and with many tenders this week including Algeria and Tunisia which is likely to be sourced from the EU, the market is likely to remain underpinned," Openfield said.
May feed wheat in London was off 1.55 pounds or 1.1 percent at 138.85 pounds a tonne.
German cash wheat premiums in Hamburg were firmer as prices were adjusted to compensate for the fall in Paris on Friday, with support from Germany's improved export prospects following reports of Russian restrictions.
Standard wheat with 12 percent protein content for delivery in Hamburg in January was offered for sale at 8 euros over the Paris January contract against 6 euros over on Thursday. Buyers were offering 6 euros over Paris against 5 euros on Thursday. March delivery premiums were at the same level against the Paris March contract as the January delivery.
"Paris fell back today and premiums were adjusted to compensate for this as the export outlook remains positive, with Germany and the rest of the EU likely to benefit as Russia withdraws from the export market," one German trader said. "We could even see some more internal EU demand as Russia will not be able to sell into the Spanish market."
"There is market talk that Russian port silos are cancelling export loading slots for ships because they have been asked to officially."
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