PARIS: European wheat closed the week lower on Friday, as traders took a breather this week after a sharp rise that started mid-April on concerns about freezing weather in Russia, but nervousness remained over the war with Ukraine.
Benchmark September milling wheat on Paris-based Euronext, ended the week 0.7% lower at 246.75 euros a tonne. It was still 14% above the price traded a month earlier.
“After Russian frost damage, there is also debate about whether it is too late for Russian farmers to re-sow damaged fields with wheat, perhaps corn will be their choice,” a German trader said.
“There is also nervousness about Ukraine’s drone attacks on Novorossiysk, which has escaped much impact from the war so far and is currently handling very high volumes of Russian wheat exports.”
Ukraine attacked a power substation in Moscow-occupied Crimea and an oil depot and railway station in Russia’s port of Novorossiysk, as well as an oil refinery in Tuapse overnight, a Kyiv intelligence source told Reuters.
Novorossiysk is one of Russia’s main grain export ports.
Few purchase tenders were issued by importers this week as prices firmed. Russian prices were stable at recent highs, holding well below EU levels.
Germany’s winter wheat area for the 2024 harvest has been reduced by 8.3% from a year ago to about 2.6 million hectares, Germany’s statistics agency estimated on Friday.
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