EU wheat tracks Chicago lower as Black Sea uncertainty lingers

PARIS/HAMBURG: Euronext wheat fell for a second session on Friday in step with Chicago prices while traders continued to assess the impact of war disruption to Black Sea exports from Russia and Ukraine. December wheat on Euronext settled 0.8percent lower at €241.50 (USD277.07) a metric ton after the day session.

The contract was almost unchanged over the week. Chicago wheat fell about 2percent, with the US market facing additional pressure from a seven-week high for the dollar index .

Wheat markets have been choppy this week as investors have reacted to diplomatic efforts to achieve de-escalation in Russia’s war with Ukraine, ongoing military strikes in the Black Sea zone, and signs that Russian and Ukrainian wheat was still reaching markets.

“The market is torn between hopes of a diplomatic agreement for Black Sea safe shipping against the reality that Russian and Ukrainian attacks continue every day,” one German trader said.

Shipments of about 30,000 tons of Russian wheat for sale on Friday included one loading in St Petersburg offered at USD275 a ton free on board (FOB), two in Ust-Luga at USD280 and USD275, and five from ports in Latvia at between USD275 and USD280 a ton FOB, traders said. “Today alone I saw sales offers for around 220,000 tons of Russian 12.5percent wheat for October shipment from Baltic ports,” the trader said.

“It is difficult to guess volumes of Russian wheat coming onto the market from the Baltic but it is naturally way below levels of over 1 million tons a week previously in the Black Sea.” The ongoing Russian flows have tempered reaction to demand this week from major importers Algeria and Pakistan.