European wheat futures in Paris rose on Wednesday, with no sign of any safe-shipping agreement emerging from peace talks in Abu Dhabi to enable more Russian and Ukrainian Black Sea exports.
This would keep some export demand focused on the EU, especially France.
Traders were also concerned about intensive Russian and Ukrainian attacks as the peace talks ended, with Russia's Baltic grain export port of Ust-Luga hit.
Export-boosting euro weakness also offered support, while a public holiday in France meant some market participants were absent.
December wheat on the Paris-based Euronext exchange rose 1.6% to €234.25 ($261.54) a metric ton by 1552 GMT, recovering further from Friday's four-month low of €218.50.
Wheat prices have faced recent downward pressure from expectations the Abu Dhabi talks involving Russia, Ukraine and the United States could bring a new Black Sea shipping deal.
Russian wheat exports are running around half normal volumes after attacks on ports and shipping brought a virtual halt to Russian and Ukrainian Black Sea ship-borne wheat exports in mid-August.
“Russia has made strenuous efforts to move shipments to Baltic Sea ports, including Ust-Luga, but any safe Black Sea shipping deal would possibly bring very large new volumes of Russian and Ukrainian wheat into world markets,” a German trader said. “The apparent lack of a safe-shipping deal means export demand will have to be met by the EU including France.”
However, a purchase tender from big buyer Algeria on Wednesday was expected to be substantially sourced from Argentina, where the new harvest is beginning.
A reminder of the EU’s need for corn imports after the hot, dry summer damaged crops came with Germany's 2026 corn harvest expected to fall 17.1% on the year.
(Reuters)
