PARIS: Euronext wheat fell on Friday, pressured by another slide in Chicago futures as concerns over potential supply disruptions from Russia’s war with Ukraine were tempered by comments from Russian President Vladimir Putin.
Benchmark May wheat on the Paris-based Euronext exchange was down 4 euros, or 1.1%, at 364.25 euros ($399.98) a tonne by 1442 GMT.
Chicago wheat futures fell sharply for a third day, giving back more of their gains from a record-breaking rally, as comments from Putin revived hopes of a ceasefire in Moscow’s two-week-old war with Ukraine.
“For now the panic seems to have subsided, and markets have stabilised or corrected lower for wheat,” consultancy CRM Agri said in a note. “Big questions remain over Ukrainian spring plantings and indeed winter plantings, with uncertainty as to how long the conflict will last and the lasting implications for yields and trade.”
In a first assessment of the war in Ukraine, the UN food agency on Friday said international food and feed prices could rise by up to 20%, and that 20% to 30% of fields used for major crops in Ukraine may go unplanted or unharvested.
European futures and physical premiums continued to be underpinned by signs that EU wheat is being used as an immediate replacement for Ukrainian and Russian supplies, which account for about 30% of global wheat exports, traders said.
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