LONDON, Dec 24 (Reuters) – European wheat prices rose on Wednesday as informal controls on exports from Russia boosted prospects for EU sales to major importers in the Middle East and North Africa.
Russia may fail to supply wheat to Egypt’s state buyer GASC in January as its exports have been effectively suspended by informal government curbs, Arkady Zlochevsky, the head of Russia’s Grain Union, said on Wednesday.
“What’s clear is that they won’t sell anything anymore,” one European trader said. “This is a bullish factor. Now the market wants to have more details on what the government will do concretely.”
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Russia’s government imposed informal curbs with tougher quality monitoring and limits on railroad loadings earlier this month, aiming to cool domestic prices as it tackles a financial crisis linked to plunging oil and Western sanctions.
Benchmark March on Paris-based European milling wheat futures ended an abbreviated pre-holiday session at 202.25 euros a tonne, up 0.1 percent after earlier peaking at 203.75 euros.
“It’s still the situation in Russia which dominates all news,” French analyst Agritel said in a market note.
May feed wheat futures in London ended 0.40 pounds or 0.3 percent higher at 140.75 pounds a tonne.
European wheat futures will remain closed for the rest of the week for the Christmas holiday and reopen on Monday.
