EU Wheat Prices Fall Amid Ongoing Ukraine Conflict

EU wheat prices have retreated from contract highs as the market waits to see if diplomatic efforts can ease tensions in Ukraine and restore Black Sea trade. December Euronext wheat was down 1 percent at €246.25 a metric ton, moving away from its life-of-contract high of €259.25, also a two-year high for a second-month price.

The market is cautious as Russia's attacks on Ukraine continue to disrupt Black Sea exports, leading importers to seek alternative sources like the European Union and Australia. Saudi Arabia will announce results of a wheat tender on Monday, which could determine how exporters choose their suppliers if the disruption persists.

Bertrand Oesterle from StoneX pointed out that EU countries are attracting some demand, but weather-hit maize production in France may limit wheat exports. French maize crop conditions have deteriorated further due to severe drought and heat this summer.