EU Wheat Prices Decline Amid Black Sea Export Concerns

EU wheat prices eased on Monday after reaching a two-week high on Friday. The December wheat contract, the most active one on Euronext, fell by 1% to EUR234.25 ($271.40). This decline comes as traders weigh the impact of disruptions in Black Sea exports against limited demand for Western European wheat.

The disruption in Black Sea exports is significant, with the Russian grain export hub of Novorossiysk affected by recent attacks on its ports. Traders are concerned about a potential shortfall in export supply, but there have been few signs of renewed demand for French wheat.

French wheat prices are higher than those of other origins, making it less competitive in the market. Morocco, the largest overseas buyer of French or EU wheat, has halted imports since June 1 to prioritize its own harvest. The suspension will last until August 31, 2019.