HAMBURG: European wheat futures fell to one-week lows on Monday, pressured by a fall in Chicago as US corn dropped from 7-1/2 year highs and as traders assessed the potential impact of planned wheat export taxes in Russia.

March milling wheat on the Paris-based Euronext exchange, was down 3.75 euros, or 1.6%, at 223.25 euros ($269.62) a tonne at 1709 GMT.

It earlier fell to 222.50 euros before finding chart support at that level.

As on Friday, Paris selling was focused in the front-month contract, which had built up a large premium over deferred delivery positions when it rallied to a 7-1/2 year peak of 240.25 euros in mid-January.

Traders said price movements remained choppy as traders reacted to volatility in outside markets as well as fundamental news like huge Chinese purchases of US corn.

Russia, one of the world’s largest wheat exporters, is considering a formula-based tax on the wheat it sends abroad from June 1, a month earlier than expected.

“Daily trading has been pretty volatile,” a dealer said. “Derivatives are tracking each other and Russian futures falling.”

Some traders saw fundamental pressure as Russian exports speed up before an initial export tax is introduced in mid-February.

In Germany, optimism about more export sales was underpinned by the reports about Russia’s export tax.

“The Russian government appears to be ever-more determined to put the brakes on the country’s wheat exports as the reports over the weekend underlined,” one German trader said. “This would increase demand for the remaining export stocks in the EU.”

Ship loading in German ports also remains active, with a vessel this week loading 30,000 tonnes for Morocco following a series of shipments last week to Algeria, Morocco and South Africa.

Standard milling wheat with 12% protein for February delivery in Hamburg was offered for sale little changed at 4.75 euros over Paris March.—Reuters