Black Sea Tensions Drive Eurozone Wheat Prices Higher

Eurozone wheat prices rose on Friday, marking a weekly gain as tensions in the Black Sea region escalated. The Ukrainian attack on Russia's Baltic port of Ust-Luga and Moscow's rejection of a possible ceasefire intensified concerns over reduced exports from Russia and Ukraine.

The most-active December wheat contract on Euronext was up 1.3% at €235.75 ($273.07) per metric ton, setting a new two-week high at €237.50. September futures led gains, with technical adjustments before the expiry of the contract adding to support from Black Sea tensions.

Chicago wheat futures also rose around 3%, boosted by a drop in the dollar. According to Ole Hansen, head of commodity strategy at Saxo Bank, 'wheat has regained a geopolitical premium.'