PARIS: Euronext wheat fell in step with Chicago on Wednesday as futures faced chart resistance and traders waited for clearer signs on how an export tax planned by Russia may affect international supply.

March milling wheat on Paris-based Euronext settled 1.50 euros, or 0.7%, lower at 205.75 euros ($250.46) a tonne.

Chicago wheat turned lower as it failed to hold above the $6 threshold crossed in overnight trading.

Wheat markets were consolidating after sharp price moves late last week and early this week when Russian plans to impose a wheat export levy fuelled speculation about disruption to international trade.

Traders were assessing the possible consequences of the tax, with uncompetitive offers of Russian wheat in an Egyptian import tender on Tuesday casting doubt on the idea of a rush to sell before the levy takes effect in mid-February.

“There is a lot of debate in the market about whether Russian farmers will hold back on sales as they will be the losers in plans to reduce domestic prices,” a German trader said.

“Russian exporters had a chance to grab some business in the Egyptian tender with cheap offers on Tuesday but did not do this. The EU could get more sales now in place of Russia.”

However, a dwindling surplus in the European Union after a smaller 2020 harvest and brisk recent export demand was seen limiting scope for overseas sales in the rest of the season.

Physical premiums held steady in France and Germany, with export loading programmes continuing to absorb harvest supplies.

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

“The EU supply situation remains very tight,” Sebastien Poncelet of consultancy Agritel said. “The EU overdid it with exports this autumn and there’s not much room for manoeuvre.”—Reuters