Black Sea Disruptions and Algerian Tender Boost European Wheat Prices

The European wheat market has received support from continued disruptions to Black Sea exports due to the ongoing conflict between Russia and Ukraine, as well as a new purchase tender from Algeria.

Benchmark December wheat on the Paris-based Euronext exchange rose by 1.3% to €244.25 ($281.82) per tonne, but remains below its contract high of €259.25 reached on September 2.

Russian and Ukrainian ship-borne exports from the Black Sea have nearly ceased due to the fighting, with alternative routes unable to compensate for the lost sea shipments.

Analyst Donatas Jankauskas noted that while the US Department of Agriculture (USDA) released bearish wheat estimates in its world supply and demand report, it still expects Russia to export 43 million tons of wheat this season, a figure that 'looks less realistic' with each passing day.