HAMBURG: European wheat futures in Paris fell sharply on Monday after sentiment was depressed by the success of Black Sea region wheat in a closely watched purchase tender by Egypt.

Falling US wheat markets, lower prices in rival exporter Russia and receding fears about an immediate threat to wheat exports from the Russia-Ukraine crisis also pressured prices.

Most-traded March milling wheat on the Paris-based Euronext exchange unofficially closed with a fall of 13.25 euros, or 4.75%, at 265.50 euros ($297.73) a tonne after touching a low of 264.00 euros, its weakest since Jan. 17.

“I think the high volumes of Russian and other Black Sea region wheat offered in Egypt’s tender on Friday is pressuring prices today,” one trader said.

French wheat was offered at the lowest FOB price in Egypt’s tender but Russian, Ukrainian and Romanian wheat benefited from lower shipping costs and won the final purchase late on Friday night with lower cost and freight prices including shipping.

Russian wheat was offered heavily despite high Russian export taxes and regional political tension.

“People weren’t expecting so many Russian offers in the Egyptian tender last week,” another trader said.

Russian wheat prices also continue to fall, pressuring Euronext, and Russia also cut its wheat export tax on Friday after recent rises.

Traders are concerned French wheat needs to find new export markets after Algeria, France’s top customer, turned its back on French wheat recently, though there were signs that offers of French wheat were permitted in a minor tender by Algeria last week.

German traders were also disappointed at the strong performance of Russian wheat in the Egyptian tender.

“I think it shows Black Sea exporters are unconcerned by the Russia-Ukraine friction and that they also have a lot of wheat left to ship from old-crop slots,” one trader said.

Standard 12% protein wheat for delivery February onwards in Hamburg was offered for sale at about 9.5 euros over Euronext March.