PARIS: Euronext wheat hit a two-week high after a Reuters report that Russia is considering an export tax raised expectations of reduced supply from the world's biggest wheat exporter. March milling wheat on Paris-based Euronext settled up 5.75 euros, or 2.8%, at 210.50 euros ($254.92) a tonne, after reaching its highest since Nov. 27 at 211.25 euros in late trading on Friday.

Over the week, the contract added 4.2%, having rebounded sharply from Monday's two-month low of 199.00 euros. Russian officials are considering a wheat export tax of around 2,000 roubles ($27.3) per tonne for Feb. 15-June 30, sources told Reuters on Friday, a day after Moscow said it would consider measures to stabilise domestic prices.

"Inevitably, export tax plus Russian wheat equals market reaction," one futures dealer said. However, traders cautioned that Russian measures could have differing effects, including a surge in shipments before a tax is implemented that could weigh on international prices.

Consultancy Sovecon's sharp downgrade to its forecast for Russia's 2021 wheat crop, to 76.8 million tonnes from 81.0 million previously, also supported prices by underscoring poor conditions for Russian crops going into winter. In Germany, some traders saw scope for demand being shifted from Russia towards European Union suppliers.

"The Russian government wants to cool local prices and this can only be achieved by some system or other which achieves a real reduction in exports. The EU could take up some of the sales," a German trader said.

Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale at around 5.0 euros over Paris March futures with buyers seeking around 4 euros over.

Physical premiums in France held firm as a steady export programme, including renewed activity towards Algeria, absorbed a dwindling French harvest surplus.