Source: APKinform (Ukraine)
At the end of trading on December 16, wheat futures on the Euronext exchange rose to a seven-week high, reaching 233.5 EUR/ton (+4 EUR/ton to the level of the previous trading day) due to the results of Saudi Arabia’s purchase of wheat in a tender, indicating that competition from Russia is decreasing.
In particular, Saudi Arabia’s procurement agency purchased 804 thousand tons of wheat at the tender, and the main volumes of grain will come from Romania, Bulgaria and South America, while a small amount of Russian wheat was purchased. Rising prices and slowing supplies from Russia drew attention to possible reduction of supplies from the mentioned region.
The market also reacted to the news that Morocco will maintain import subsidies, confirming high requirements for purchased grain. It should be noted that the country is one of the main markets for wheat from the EU. In particular, according to the European Commission, since the beginning of the 2024/25 marketing year, as of December 9, deliveries from the EU to Morocco amounted to 999.1 thousand tons of soft wheat.