HAMBURG: European wheat was little changed on Tuesday as traders assessed whether Ukraine would be able to continue exporting shipments despite Russia suspending its involvement in a safe shipping corridor for Ukrainian grain.
Benchmark December milling wheat on the Paris-based Euronext exchange rose 0.07%, or 0.25 euro, to 352.50 euros ($347.60) a tonne at 1517 GMT, giving up earlier losses as US wheat futures in Chicago stabilised.
Paris wheat rose about 4% on Monday after Russia on Saturday suspended participation in a UN-brokered deal to facilitate shipments out of the Black Sea after what it said was a major Ukrainian drone attack on its fleet in Crimea, dealing a blow to attempts to ease the global food crisis.
Markets were reassured after President Vladimir Putin said on Monday Russia is not ending its participation in the shipping deal.
Ships continued to leave Ukrainian ports carrying grain exports on Monday and Tuesday. “Some vessels are still on their way out of the corridor but for the time being we don’t expect new ones to go in,” said Carlos Mera, head of agricultural commodities market research at Rabobank. “Despite the increased tensions, there is still some hope a new deal could be brokered, likely a watered-down version that will allow only exports to underdeveloped countries, but maybe a longer lasting one.” A public holiday on Tuesday in France and some other European countries meant some market participants were absent.