PARIS/HAMBURG: Euronext wheat rose on Wednesday, recovering from a three-week low as concerns over war disruption to Black Sea exports offset earlier pressure from falling oil prices.
December wheat on Euronext was up 1.3percent at €231.50 (USD267.29) a metric ton by 1615 GMT.
The contract earlier slipped to €226, its lowest since July 15, before rebounding.
Grains came under pressure from a slide in oil on signs of progress in talks to end the Iran war and restore regular traffic through the Strait of Hormuz.
Wheat later recovered as oil prices steadied and fighting in the Black Sea zone came back into focus.
Traders said an unconfirmed rumour that Russia was planning to close its Black Sea ports on Wednesday evening due to security risks fuelled a rise of as much as 2.4percent for Euronext December.
Euronext later pared gains as traders played down the talk and also awaited results from a tender by major wheat importer Algeria.
“There are a lot of comments about ‘what if’ ports are closed,” one futures trader said. “Ukraine certainly won’t sit by as Russia steps up its attacks, but I don’t think strategically Russia would close its ports.”
The Algerian tender was being watched notably given uncertainty over whether merchants will supply wheat from Russia or Ukraine amid war risks. Traders initially reported that Algerian state grains agency OAIC had started buying at around USD289 per ton, cost and freight (c&f), with tender negotiations continuing.
The prospect of large harvests in the Black Sea region and also in importing countries like Morocco and Turkey nonetheless remained a curb on prices.
“There is a lot of concern in the market about the attacks on Russian and Ukrainian ships and ports and what the implications are of this for export shipments,” one German trader said.
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