Wheat Prices Soar as Black Sea Export Disruptions Persist

EU wheat futures rose last week due to ongoing disruptions in Black Sea exports caused by Ukraine's attack on a Russian port and Moscow's rejection of a potential truce. The December contract, the most-active position on Euronext, gained 1.3% to €235.75 (USD273.07) per metric ton at 1553 GMT.

The front-month September futures were up 2.5% at €227 a ton, supported by Black Sea tensions and technical adjustments ahead of the contract's expiry. Chicago wheat futures also rose around 3%, boosted by a decline in the US dollar.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that 'wheat has regained a geopolitical premium.' Ukrainian attacks on Russian grain facilities and Russian strikes against Ukrainian ports have highlighted the vulnerability of one of the world's most important agricultural export corridors.