EU wheat jumps on report Russia to escalate war with Ukraine
WEAT•European wheat climbs on Black Sea supply concerns
PARIS/HAMBURG, Aug. 26 (Reuters) - European wheat futures climbed 4% on Wednesday to a one-month high as a report that Russia plans to intensify attacks on Ukraine heightened concerns about war disruption to massive Black Sea grain trade.
December wheat BL2Z6, the most active contract on Euronext, was up 4% by 1654 GMT during the evening session to trade at €246.25 ($286.88) a metric ton, its highest since July 24.
Chicago wheat Wv1 was up nearly 6%. GRA/
Russia is considering stepping up missile strikes on Kyiv and on critical infrastructure elsewhere in Ukraine after concluding that efforts to negotiate a peace deal have reached a dead end, Bloomberg News reported on Wednesday, citing three people close to the Kremlin.
Traders said the report further cooled hopes of a recovery in Black Sea shipments after news earlier on Wednesday that repair work at NKHP, one of three grain terminals at Russia's main Black Sea export port of Novorossiysk, could take up to four months, according to the company.
"There are still no real signs of some form of deal which could allow Russian and Ukrainian wheat export shipping and ports to resume operations without attacks," one German trader said.
Traders have cited some purchases of European Union supplies by importers instead of Russian and Ukrainian wheat, though demand remained moderate.
"Some importers, especially in Egypt, are getting worried but are still hoping for a Black Sea deal which would probably push prices down."
"But importers of Russian and Ukrainian wheat in Bangladesh have started to switch purchases, with some Bulgarian wheat bought by Bangladesh and inquiries about Romanian wheat also made."
Low prices quoted for Russian and Ukrainian origins were encouraging some buyers to wait, despite uncertainty over logistics.
Traders said Russian and Ukrainian 11.5% protein wheat were both around $207-$212 a ton free on board (FOB) for September shipment. French and Russian were much higher, around the same at $271-$274 a ton FOB, depending on currency and Euronext moves.
