Paris wheat falls as impact of Black Sea attacks assessed

Russian and Ukrainian attacks continued over the weekend, with traders relieved Ukraine had not hit the huge grain export terminals at Russia’s Black Sea port of Novorossiysk and that wheat export ports in both countries appeared to have escaped major harm.

“Russia’s port grain terminals were generally not hit and this is a great relief, but there are fears the logistics chain feeding them may have been disrupted,” one trader said. “This may slow Russian exports and support wheat prices.”

Traders were also watching fast progress in EU wheat harvests in mostly favourable dry weather in several countries including Germany.

But dryness also meant falling water levels on Germany’s river Rhine hindered shipping of freight including grains, with vessels only able to sail part-loaded.

A sharp fall in crude oil prices of around 6% after the U.S. and Iran paused strikes over the weekend following two weeks of attacks also depressed grain prices, with a fall in Chicago wheat also providing Euronext weakness.

Euronext had fallen sharply on Friday on reports Ukraine was discussing possible mechanisms to keep vessels moving through its major export ports, raising hopes that Ukrainian grain exports may avoid a major disruption following Russian drone and missile attacks on ports and shipping. But Ukraine later denied the report.

European wheat futures fell on Monday, as traders assessed the impact of Ukrainian and Russian attacks on ports and shipping, with major grain export terminals in the two countries apparently escaping major damage.

Front-month September milling wheat on the Paris-based Euronext exchange ended the daytime session at 1630 GMT down 1.4% at €229.50 ($261.24) a metric ton after moving in and out of positive territory in afternoon trade.