HAMBURG: Euronext wheat futures fell on Monday, retreating further from last week’s record highs, as market participants exited front-month contracts while a forecast of a record crop in Australia tempered global supply concerns.

March wheat, the most active contract on Paris-based Euronext, unofficially finished down 4.75 euros, or 1.5%, at 298.00 euros ($335.67) a tonne. It earlier slipped to a 10-day low of 297.00 euros, moving away from last Wednesday’s peak of 311.50 euros, a record for a second-month position.

Front-month December suffered heavier losses in thin volumes in the run-up to its expiry next week. It lost 11.75 euros, or 3.9%, to close at 287.50 euros, pulling back from the 313.50 euros touched on Wednesday to establish a record high for any Euronext contract.

Euronext wheat had fallen on Friday in a broad slide across financial markets on fears about the new Omicron coronavirus variant. “It’s a bit technical today with the sharp drop on the December contract,” one French trader said. “But with the strong international demand, there’s scope for Euronext to bounce back.”

News Australia’s official forecaster had raised its estimate of the country’s new wheat crop to a record high, cooling sentiment among some traders, with some seeing competition for French wheat in Asian feed markets. A gap between French wheat and cheaper offers of Black Sea origins in a tender by Egypt on Monday also tempered export expectations in France.

“Russian wheat just keeps coming into the export market, now with a tax of over $80 a tonne,” a German trader added. “The Russian government’s efforts to brake wheat exports are still not really working.”

Standard 12% protein wheat for January delivery in Hamburg was offered for sale at about 5 euros over Euronext March , with buyers offering about 1 euro over.