EU wheat pauses after 6-day rally on Black Sea escalation and weak euro

Published 2024년 11월 25일

Tridge summary

European wheat prices fell after six consecutive increases, largely due to the improved outlook for the Australian harvest and the depreciation of the euro. However, the conflict in Ukraine continued to support the market. Russia's firing of a hypersonic missile in response to the U.S. and UK's decision to allow Kyiv to use advanced weapons increased market tensions. The fall of the euro is viewed favorably by European wheat traders as it reduces the competition from Russian wheat in export markets. Despite this, traditional importers like Egypt appear to have sufficient supply cover. Traders have reported shipments of wheat from Poland, the Baltic States, Sweden, and Poland to British buyers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

European wheat edged lower on Friday after rising for six consecutive sessions as improved prospects for the Australian harvest weighed on the market but it remained supported by sharp fall of the euro and a scaling-up of the war in Ukraine. Benchmark December milling wheat BL2Z4 on Paris-based Euronext, was down 0.8% by 1630 GMT to 218.5 euros ($227.11) a metric ton. By the same time most traded wheat on the Chicago Board of Trade was down 1.2% to $5.62-3/4 a bushel. In a further escalation of the 33-month-old war, Russia fired a hypersonic intermediate-range ballistic missile at Dnipro on Thursday in response to the U.S. and the UK allowing Kyiv to strike Russian territory with advanced Western weapons, and warned that more could follow. “Tensions are rising and the market does not like uncertainty, especially when it involves such big exporters,” a trader said. The fall of the euro, which hit a two-year low on Friday, is welcome as European wheat faces stiff competition from ...

Source: Hellenic Shipping News