Euronext Wheat Prices Decline Amid Hopes for Black Sea De-escalation

Euronext Wheat prices fell on Thursday after reaching a one-week high due to a weakness in Chicago grains and hopes for a de-escalation of tensions in the Black Sea Export Zone.

The December wheat contract traded at EUR243.50 ($279.42), down 0.4% from its earlier peak, according to Euronext. This came after the price rose to EUR246, extending the rebound from Monday's low of EUR238.

Traders cited a Turkish proposal to Russia and Ukraine for a ceasefire on strikes in the Black Sea as a possible reason for the decline, but were skeptical due to previous similar proposals.

A German trader noted that both Russia and Ukraine continued to launch heavy attacks, and there was still no concrete evidence of a deal being reached. The continued export of Russian wheat via the Baltic and Caspian Seas also dampened concerns over disruptions to Black Sea trade.

Ole Hansen, head of commodity strategy for Saxo Bank, stated that speculators have taken record positions in key crops, making prices more susceptible to a pullback if there is any improvement in supply.