Wheat Prices Rise on Disrupted Black Sea Exports

European wheat futures rose on Monday due to disruptions in Russian and Ukrainian Black Sea ship-borne exports. The continued interruption has led to a shortage of supply, causing prices to increase.

The Paris-based Euronext exchange saw its benchmark December wheat contract rise by 1.3% to €244.25 (USD281.82) per metric ton at 1446 GMT. However, this is still below the September 2 contract high of €259.25.

Analyst Donatas Jankauskas from CM Navigator attributed the increase in prices to the ongoing conflict between Russia and Ukraine, which has effectively halted Black Sea shipments.

Jankauskas stated that 'Euronext wheat is finding support as Black Sea shipments from Russia and Ukraine remain basically stopped by the fighting.' He also noted that the US Department of Agriculture's recent world supply and demand report did not fully reflect the severity of the situation in the Black Sea.