LONDON: Euronext wheat rose sharply on Monday as intense fighting in Ukraine diminished hopes that a sea corridor could be created for exports that have been blocked since Russia’s invasion. September milling wheat on Paris-based Euronext settled 5.1% higher at 397.50 euros ($425.05) a tonne.
Russia struck Ukraine’s capital Kyiv with missiles early on Sunday for the first time in more than a month.
Prices had fallen on Friday boosted by hopes that it might be possible for a deal to eventually be agreed to allow some of Ukraine’s massive grain stocks to be exported through seaports which have been shut since Russia’s invasion in February.
Ukrainian President Volodymyr Zelenskiy said on Monday there could be as much as 75 million tonnes of grain stuck in Ukraine by this autumn and that Kyiv wanted anti-ship weapons that could secure the safe passage of its exports.
Dealers noted Russian warships continued to control access to Ukraine’s Black Sea ports with President Vladimir Putin proposing that grain could be shipped via Belarus but only if sanctions against Russia’s ally were lifted.
Storms in the European Union’s top producer France added to the bullish mood.
Farms across France were hit by heavy hail and fierce storms over the weekend, the National Farmers’ Union Federation (FNSEA) said on Monday, following drought in May with the wheat market already grappling with high volatility.
A public holiday in France on Monday helped to curb activity in both the futures and physical grain markets.
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