Wheat Prices Surge as Black Sea Export Squeeze Continues Unabated
Benchmark wheat prices on Euronext have reached a contract high as traders remain skeptical about the resumption of Black Sea grain trade.
The December wheat contract, the most-active on Euronext, rose by 1% to €250 (USD289.68) per metric ton in evening trade, marking its highest price ever and a two-year high for second-month prices.
Chicago wheat also climbed more than 3% to hit another three-year high, while disruptions to navigation in the Azov-Black Sea basin have led to a significant accumulation of agricultural products at farms in Russia's Rostov region.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that the disruption is reducing farmers' cash flow and raising concerns about planting and input use for next year's harvest.