EU wheat falls further from highs as Black Sea jitters ease

Euronext wheat prices experienced a decline for the second consecutive day, moving away from three-month highs as traders seized the opportunity to book profits and concerns over Black Sea supply tightness lessened. The December wheat contract on Paris-based Euronext dropped by 1.5% to 228.75 euros ($250.53) per metric ton. This decrease came despite the market's initial upward momentum, fueled by drought conditions in Russia, potential export restrictions from Moscow, and geopolitical tensions in Ukraine and the Middle East, all of which stoked fears about Black Sea wheat exports. Factors such as a lift in the dollar's value, robust U.S. job numbers, and rumors of a slight easing of Turkey's wheat import ban contributed to the price downturn. Additionally, the market's optimism was dampened by the possibility of Egypt switching to corn or sorghum for state-subsided bread and a subdued import tender by Saudi Arabia, both of which were expected to favor Russian wheat. Delays in maize harvesting and wheat sowing in France, attributed to excess rainfall, were expected to further slow down market activities in the coming days.