Euronext wheat rose on Monday as the latest attacks in Russia's war with Ukraine cooled hopes for an upturn in Black Sea exports while optimism about a US-China summit this week lifted Chicago grains, traders said.
December wheat on Paris-based Euronext ended the daytime trading session at 1630 GMT up 0.9% at €243.75 ($279.63) a metric ton, regaining ground after falling in the two previous sessions.
Chicago wheat climbed about 2%, drawing additional support from a jump in corn prices as traders saw positive signs in weekend talks between US and Chinese officials ahead of a meeting between the countries' presidents this week.
Continuing attacks by Russia and Ukraine, including strikes on Moscow and on Ukrainian shipping, clouded prospects for de-escalation that might alleviate disruption to Black Sea exports. Russian and Ukrainian ship-borne exports in the Black Sea are at a virtual halt after attacks on ships and ports.
“The weekend saw especially heavy drone attacks by Ukraine and Russia,” one German trader said. “Headlines today were about Turkish moves to get a safe shipping deal but, overall, any agreement that would allow Russian and Ukrainian Black Sea exports to restart seems remote.”
Russian exports via alternative routes are becoming substantial but are still way below normal volumes through the Black Sea.
Wheat was also supported by importer demand despite high prices, with Pakistan buying 365,000 tons of wheat on Saturday and then issuing another tender for 185,000 tons on Sunday.
“Wheat price rises are limited by eagerness of farmers to sell at current high prices in case any deal for safe Black Sea shipping pushes prices down,” the German trader said.
(Reuters)
