HAMBURG: European wheat jumped on Monday as the continuing Russian invasion of Ukraine and sweeping Western sanctions against Moscow deepened fears of disruption to Black Sea export flows.
Benchmark May wheat on the Paris-based Euronext unoffically closed up 25.75 euros, or 8.8%, at 315.50 euros ($353.61) a tonne.
It remained below Thursday’s peak of 341.75 euros, an all-time high for Paris-based futures following the start of the fight in Ukraine.
Traders remained nervous about the risk of large volumes of Ukrainian and Russian wheat being inaccessible to the international market, with Egypt’s cancellation of a second import tender in a row underscoring disruption to normal activity.
“There’s some switching of origins going on here and there,” a French trader said. “But it’s clear with the GASC tender, in which you had just two French offers at hefty prices, there’s not that much on offer.”
Egypt’s GASC cancelled a wheat purchase tender on Monday in thin participation with a surge in prices.
French wheat was offered at the lowest price of $429.22 a tonne c&f, with only three trading houses taking part. In its last wheat purchase on Feb. 17, GASC bought wheat at $338.55 a tonne c&f after receiving about 20 offers.
German traders said the surge in Paris made sellers unwilling to deal, with expectations prices could rise further.
“There is a growing perception that fighting in Ukraine could go on longer than previously anticipated, which could continue to disrupt Black Sea region wheat exports,” one German trader said.
In maize (corn), Euronext June futures ended up 8.1% at 290.00 euros a tonne, supported by signs of demand for French maize to replace Ukrainian supplies.
Front-month March, which expires next week, briefly touched an all-time high for a Euronext maize contract at 328.25 euros.
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