EU wheat jumps on talk of possible disruption to Russian export route

- Euronext wheat climbed 4% on Friday to a six-week high as rumours about a possible closure of the Sea of Azov to shipping sparked concern about disruption to exports from Russia, the world's biggest wheat supplier.

September milling wheat BL2U6 on Paris-based Euronext was 4.3% up at €213.75 ($244.21) a metric ton at 1434 GMT, its highest since May 26. Chicago Board of Trade wheat Wv1 also rallied to a six-week peak. GRA/

Ukraine has struck a number of Russian tankers in the Sea of Azov that connects with the Black Sea, and traders said there was talk in the market about a possible closure by Russia of Azov to all shipping.

"It's the reason for the rally on Matif (Euronext) and CBOT," a futures trader said, noting that the risk to a route that accounts for millions of tons of Russian wheat exports unsettled investors.

However, traders said there was no clear information so far about any restrictions or why they would be imposed.

Russia's Agriculture Ministry did not immediately respond to a Reuters request for comment.

Ukraine has intensified attacks on Russian energy installations and cargoes, but has not targeted Russian grain assets.


EYES ON USDA SUPPLY-DEMAND REPORT

Grain markets were also bracing for the U.S. Department of Agriculture's closely watched monthly supply-and-demand report at 1600 GMT.

The report will incorporate the agency's end-June acreage and grain stocks estimates, which featured an unexpected cut to U.S. wheat acreage.

Grain trade association Coceral cut its outlook for this year's soft wheat production in the European Union and Britain in a special update following extreme heat in Europe, though like other forecasters it made a steeper cut to its maize harvest estimate.

November maize EMAX6 was up 2.2% at €237.50 a ton, after hitting a contract high of €242.50 this week as more torrid weather in France threatened further damage to maize crops.

Prices at 1434 GMT

Last

Change

Pct Move

Paris wheat BL2U6

213.75

8.75

4.27

Paris maize EMAc2

237.50

5.00

2.15

Paris rapeseed COMc1

516.50

-2.50

-0.48

CBOT wheat Wv1

642.25

22.50

3.63

CBOT corn Cv1

455.75

3.75

0.83

CBOT soy Sv1

1185.25

3.75

0.32

WTI crude oil CLc1

71.78

-0.30

-0.42

Euro/dollar EUR=

1.14

0.00

-0.08

Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton


($1 = 0.8753 euros)