Black Sea Disruptions Keep Paris Wheat Prices Elevated
Paris wheat futures rose on Monday as continued disruption to Russian and Ukrainian Black Sea exports kept prices supported. Benchmark December wheat on the Paris-based Euronext exchange climbed 1.3% to €244.25 ($281.82) a tonne, still below its September 2 contract high of €259.25.
The US Department of Agriculture (USDA) estimates that Russia will export 43 million tons of wheat this season, but this may be overly optimistic given the current situation at the Black Sea ports. CM Navigator analyst Donatas Jankauskas said, 'Euronext wheat is finding support as Black Sea shipments from Russia and Ukraine remain basically stopped by the fighting.'
The disruption to Russian and Ukrainian exports has been exacerbated by the conflict between the two countries, with alternative routes unable to fully compensate for lost sea shipments. Algerian demand for wheat also provides a boost to Euronext prices.