Turkey's Diplomatic Push Drives Down European Wheat Prices
European wheat prices took a sharp drop on Monday after Turkey's Foreign Minister Hakan Fidan announced that his country has a plan to ensure safe passage for grain via the Black Sea. This news sparked profit-taking, with December wheat futures falling by 2.2% to EUR245 ($284.57) per metric ton at the Paris-based Euronext. The price drop was also attributed to renewed hopes of a diplomatic resolution to the war disruption of Black Sea grain transportation.
The recent attacks have severely impacted grain loading at Russian and Ukrainian Black Sea ports, putting pressure on importers. Analysts noted that Russia has rerouted its shipments towards the Baltic Sea, including ports in the Baltic States. This shift in trade routes is expected to continue if Russian and Ukrainian Black Sea Wheat returns to the market as high-volume ocean shipments.
APK-Inform, a consultancy, reported a 28% increase in weekly Ukrainian exports of wheat, corn, and barley between August 20 and 26. One German trader stated that Turkey is a major driving force behind previous Black Sea safe shipping agreements due to its reliance on imports from Russia or Ukraine.