Euronext Wheat Rises Amid Black Sea Export Disruptions

The price of Euronext wheat rose on Friday, marking a weekly gain as tensions in the Black Sea region intensified. The December wheat contract, which is the most-active position on Euronext, was up 1.3% at €235.75 (USD273.07) a metric ton. This increase follows weeks of attacks on shipping by Russia and Ukraine, which have curtailed grain shipments from the area.

Ole Hansen, head of commodity strategy at Saxo Bank, said that wheat has regained a 'geopolitical premium' due to the Black Sea conflict. He noted that Ukrainian attacks on Russian grain facilities and Russian strikes against Ukrainian ports have highlighted the vulnerability of one of the world's most important agricultural export corridors.

The front-month September futures contract was up 2.5% at €227 a ton, with technical adjustments contributing to its gain. Chicago wheat futures were also up around 3%, driven by a drop in the dollar.