European Wheat Rises as Ukraine War Diplomacy Fails

European wheat futures rose 1.2% on Monday to €249.25 ($289.78) per metric ton, as hopes for a breakthrough in ending the Ukrainian war were dashed by US diplomatic efforts.

The weekend visit of US envoys Jared Kushner and Steve Witkoff to Moscow and Kyiv did not yield any significant progress towards a peace deal that would enable Ukrainian and Russian grain exports to resume via the Black Sea.

Tit-for-tat attacks between Russia and Ukraine have brought their Black Sea shipments to a near-halt, prompting buyers to seek alternative sources of wheat. The west EU has won new sales to Egypt, Sudan, and West Africa to replace these shipments, supporting prices.

However, some importers in the Middle East and Asia are delaying purchases in hopes that a deal will be reached to resume Black Sea shipping, which would likely push wheat prices down sharply.