EU wheat heading for highest weekly rise since 2022

- European wheat rose on Friday, putting it on course for its biggest weekly gain in more than four years as traders worried that escalating tensions between Russia and Ukraine would curb exports from the Black Sea region.

Benchmark September milling wheat BL2U6 on Paris-based Euronext was up 1.2% by 1420 GMT to €232.25 ($265) a metric ton. It gained 7.4% over the week, the highest weekly rise on the front-month contract BL2c1 since April 2022, shortly after Russia invaded Ukraine.

The contract has risen 14% since late last week when reports emerged of Ukrainian attacks on ships in the Sea of Azov, the route for a quarter of Russia's grain exports.

Russia has been attacking Ukrainian deepwater ports that handle much of the country's grain and other cargo — vital to its wartime economy.

The strikes have led to a partial halt in grain shipments and an almost complete suspension of grain purchases at port terminals, traders and analysts say.

"The focus has been on Black Sea ports and exports all week. Attacks don't seem to be calming down, so the market follows," a French trader said.

"We'll see what happens over the weekend. That will set the tone for next week," he added.

Cheap offers for Ukrainian and Russian wheat were still being made, but traders described the Ukrainian market as "confused" after repeated Russian attacks on ports and ships.

Traders noted that Russian wheat was still being exported from the large port of Novorossiysk and other Black Sea ports despite the attacks.

However, traders remained concerned that Ukraine could target Russian Black Sea grain ports.

Import demand was quiet after this week's price surge. GRA/TEND

Prices at 1420 GMT

Last

Change

Pct Move

Paris wheat BL2U6

232.25

2.75

1.20

Paris maize EMAX6

244.50

0.75

0.31

Paris rapeseed COMc1

543.25

7.50

1.40

CBOT wheat Wv1

676.00

1.25

0.19

CBOT corn Cv1

464.75

0.75

0.16

CBOT soy Sv1

1199.50

4.50

0.38

Euro/dlr EUR=

1.14

0.000

-0.02

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