EU Wheat Prices Surge Amid Ongoing Black Sea Conflict
The European Union's wheat market continues to rise as concerns over the ongoing conflict in the Black Sea region persist. Euronext wheat has set a new one-month high, with December wheat contracts up 0.6% to €246.75 per metric ton.
The increase is attributed to the risk of prolonged disruption to Russian and Ukrainian exports, which has dimmed hopes of a swift recovery in Black Sea shipments. According to British merchant ADM Agriculture, 'Black Sea risk dominates, with renewed Russian attacks, damage to export infrastructure and severe Ukrainian shipping bottlenecks increasingly shifting the market narrative from temporary disruption towards a potential structural reduction in Black Sea supply.'
International prices are being supported by growing signs of importers turning to other origins, including European Union supplies. In France, two vessels are due to call in the coming days to load wheat for Egypt, while another vessel has already loaded 48,000 tons of French wheat at Rouen for Sudan.