PARIS: Euronext wheat futures fell to a 10-day low on Friday after Russia raised its export forecast in a move that dampened speculation it would restrict shipments.
Losses in Paris were limited by a weaker euro and expectations that Russia exports would still slow sharply in the second half of the season and leave more room for other suppliers.
Benchmark March milling wheat on Paris-based Euronext, was down 1.50 euros, or 0.7 percent, at 204.50 euros ($233.07) a tonne by 1707 GMT. It earlier fell to 204.25 euros, its weakest level since Dec. 11.
Chicago wheat, the global benchmark, fell more than 1 percent, with additional pressure from a firm dollar.
Russia's agriculture ministry said after a meeting with exporters that it had raised its outlook for 2018/19 wheat exports to 37 million tonnes, against 35 million previously, as part of an increased projection for total grain shipments.
The ministry said the increased forecast would ensure stable prices. It did not mention export restrictions and traders said Friday's meeting did not suggest any restrictions were planned.
Speculation that Russia could limit exports this season have supported global wheat prices in recent months.
"Like each time since September, nothing came out of the meeting between the Russian authorities and exporters, and it's now prices that are doing the work of curbing Russian exports," consultancy Agritel said.
Rising Russian prices, illustrated by an Egyptian tender on Thursday in which Russia failed to clinch a sale for the first time in six months, are expected to increase demand for wheat from other zones such as the European Union and the United States.
European traders were also awaiting clearer indications on newly harvested supply from Argentina, which can compete with French wheat in North Africa.
In other export news, Tunisia bought 75,000 tonnes of soft wheat in a tender on Friday along with barley and durum wheat.
Activity on Euronext was moderate as participants rounded off business before the Christmas and New Year holidays.
Euronext will close early on Monday for Christmas before reopening on Thursday.
Cash markets in Western Europe are expected to be inactive until the new year.
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