European Wheat Prices Rise as Black Sea Disruptions Continue
European wheat futures rose on Monday due to continued disruptions in Russian and Ukrainian Black Sea ship-borne exports. According to CM Navigator analyst Donatas Jankauskas, these exports have almost stopped after both sides attacked each other's ports and shipping.
The Euronext exchange saw benchmark December wheat prices up 1.3% at €244.25 ($281.82) a metric ton, but still below the September 2 contract high of €259.25. The U.S. Department of Agriculture (USDA) estimates Russia will export 43 million tons of wheat this season, but Jankauskas believes this is less realistic given the disruptions.
Algeria's purchase tender for wheat has sparked hopes of new EU sales, with traders noting that French wheat has been excluded from recent tenders due to political tension between France and Algeria. However, Jankauskas suggests that if Russian sellers are limited, especially from Black Sea ports, Algerian demand will have to be covered by other European origins.