PARIS: Euronext wheat fell on Wednesday as ample global supplies tempered concerns about a dam collapse in war-torn Ukraine and dry weather in Europe.
September wheat on Paris-based Euronext settled 1.0% down at 228.00 euros ($243.98) a tonne. The contract was continuing to ease from Tuesday’s three-week peak of 236.50 euros after the breaching of the Kakhovka dam in southern Ukraine that had revived worries about an escalating war between grain exporters Ukraine and Russia.
“Overall, the risk premium added because of the Ukrainian dam attack is fading and it does not appear that the damage to agriculture will be very serious despite the tragic suffering of the local people,” a German trader said.
News of damage to a pipeline used to transport ammonia fertilizer from Russia via Ukraine, which Moscow has made a condition for maintaining an export corridor for Ukrainian grains, drew little reaction given protracted negotiations over the issue, traders said. Tuesday’s tender by Egyptian state buyer GASC confirmed ample availability of Russian supplies but caused confusion over pricing.
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