EU grain to enjoy spoils of Russian export curbs

European Union grain exporters will be the main beneficiaries of Russia's pullback from international grain markets as Moscow races to cool domestic prices in the face of economic crisis, analysts and traders said.

Russia, one of the world's leading grain suppliers, is restricting exports as plunging oil prices and Western sanctions hammer the rouble, pushing up inflation. The latest curb is a cut in railway loadings of grain for export.

The EU, already on course to a second season of record wheat exports, should take over many of Russia's markets, with favourable exchange rates helping member countries to move their hefty harvests.

That prospect sent Euronext futures to more than 7-month highs in early trade on Thursday, with benchmark March rising 4.9 percent to 209.50 euros. It has gained 37 percent since hitting four-year lows on Sept. 26.

"At current prices, it's clearly European wheat that will benefit," Andree Defois, head analyst at French consultancy Strategie Grains said, while noting other major exporters such as Australia, Canada and Argentina would also see new opportunities.