European wheat futures closed down 5 percent on Monday as Russia's weekend announcement that it will lift a grain export ban from July 1 signalled the return of competitively priced Russian wheat onto the world market. Benchmark November milling wheat on the Euronext exchange last traded down 12.50 euros at 238.50 euros a tonne, after falling as low as 237.75 euros shortly before the close.
The closing level in Paris was expected to trigger a similar movement in US futures when they resume trading on Tuesday after a holiday weekend in the United States, traders said. However, a correction in international prices may be limited by doubts about the extent of Russian shipments and with weather problems in the European Union and the United States continuing to underpin markets, traders said.