EU Wheat Demand Surges Amid Black Sea Disruptions

The EU wheat market has seen a surge in demand, reaching its highest level in almost four weeks. The benchmark wheat price on Euronext reached EUR242 per metric ton, with the December contract settling at EUR241 per metric ton.

This increase is largely attributed to the disruptions in Black Sea exports due to the ongoing conflict between Moscow and Kyiv. The attacks have virtually halted grain exports from the Azov basin and Black Sea basin, prompting importers to seek alternative sources.

ADM Agriculture notes that 'Black Sea Logistics remain the predominant upside risk.' Further disruptions could force importers to return to Western markets, making European wheat more expensive overseas due to a strong euro against the dollar.