HAMBURG: European wheat futures were mixed on Monday as traders assessed reports of a new Russian export quota that could be less restrictive than feared while weaker US markets in Chicago exerted negative pressure.

March milling wheat on the Paris-based Euronext exchange unofficially closed with a gain of 2 euros, or 0.6%, at 292.00 euros ($329.35) a tonne. Front-month December ended down 3.50 euros, or 1.2%, at 279.50 euros in a further sell-off before its expiry on Friday. Russia is considering setting its grain export quota at 14 million tonnes, including 9 million tonnes of wheat, for Feb. 15 to June 30. No final decision has been made.

The news cooled prices in Russia, where wheat with 12.5% protein loading from Black Sea ports for supply in December fell by about $3 a tonne at the end of last week. However, some European traders said the quota may not be as tough as feared.

“The market is still digesting the Russian export quota news and there is no new market direction coming from Chicago,” one French trader said. German traders were not confident that German wheat will be used to supply Saudi Arabia’s large purchase of 689,000 tonnes in a tender on Monday. The sellers have the option of selecting the supply origin.

“I think the Saudi purchase will be supplied largely using new crop Black Sea region wheat, possibly with some from Australia,” one German trader said. “I do not expect north Europe to have much of a chance.

“Freight (ocean shipping) costs were a vital factor in the tender awards, with a very wide range of price offers, sometimes $10 apart.” Standard 12% protein wheat for delivery January onwards in Hamburg was offered for sale at about 7 euros over Euronext March.