European wheat futures climbed on Wednesday as peace negotiations in Abu Dhabi failed to secure a safe-shipping agreement for Russian and Ukrainian Black Sea exports. December wheat on the Paris-based Euronext exchange rose 2.6% to €236.50 ($274.34) per metric ton by the end of the daytime trading session at 1730 GMT. The contract recovered from Friday’s four-month low of €218.50.
The lack of a Black Sea shipping deal is expected to keep export demand focused on the European Union, particularly France. Russian wheat exports are currently operating at about half of normal volumes due to attacks on ports and shipping infrastructure that halted Black Sea ship-borne wheat exports in mid-August.
Traders expressed concern over ongoing military strikes between Russia and Ukraine as the peace talks concluded, including an attack on Russia’s Baltic grain export port of Ust-Luga. A weaker euro also supported wheat prices by making EU exports more competitive. Trading activity was reduced due to a public holiday in France.
Wheat prices had faced downward pressure recently on expectations that the Abu Dhabi talks involving Russia, Ukraine, and the United States might produce a new Black Sea shipping agreement.