Wheat on European stock exchange resumes rally as Black Sea worries persist

Published Sep 16, 2024

Tridge summary

European wheat futures have surged to a one-month high due to concerns over Black Sea export supplies amid escalating tensions from Russia's war with Ukraine. December wheat prices settled at 225.00 euros per metric ton, peaking earlier at 228.00 euros. The market is reacting to a damaged grain vessel and increasing conflict risks. Despite early-season Black Sea wheat exports, smaller harvests and weather issues have raised supply concerns. EU wheat supply is also declining due to poor harvests in France and Germany. The USDA has lowered its EU wheat production estimate but increased global wheat stock forecasts. Chicago wheat prices also rose, bolstered by a weaker dollar and Black Sea risks.

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

Original content

European wheat futures rose on Friday to a fresh one-month high as rising international tensions over Russia’s war with Ukraine maintained concerns about Black Sea export supplies. December wheat settled 1.0% up at 225.00 euros ($249.28) a metric ton. The contract earlier reached 228.00 euros, its highest since Aug. 9. It had set a previous one-month peak on Thursday, before closing slightly lower. Thursday’s news that a bulk carrier had been damaged after leaving Ukraine, with Kyiv accusing Moscow of hitting the grain vessel with a missile, added to growing doubts about Black Sea supply after weather setbacks to crops in the region. The incident underscored escalation risks in the conflict as the West accuses Iran of supplying missiles to Russia while considering Kyiv’s calls for approval to fire Western missiles at Russian territory. Euronext December futures have rebounded by more than 10% from a near six-month low of 204.75 euros struck in late August when brisk shipments of ...

Source: Hellenic Shipping News