Source: Ukragroconsult (Ukraine)
Wheat futures on Euronext rose slightly on Wednesday as dry weather hampering sowing in Russia and Ukraine added to concerns about next year’s crop, although robust exports from the Black Sea region kept prices in check.
December wheat on Euronext Paris was up 0.8% at 220.50 euros ($245.70) per tonne by 16:00 GMT. The contract traded in both directions during the session and remained below Tuesday’s weekly high of 221.75 euros.
Chicago wheat was also up slightly.
“Financial investors are covering their short positions, but when they get out, there is no follow-through buying,” said one futures trader.
The data showed that financial investors increased their net short position in Euronext wheat last week.
The drought in the Black Sea region has supported prices, although it was too early to predict the impact on next year’s harvest.
According to consultancy Sovecon, the area sown to winter wheat in Russia fell to an 11-year low on Wednesday due to the drought in key growing areas.
In Ukraine, farmers have already sown 878,800 hectares of winter wheat for the 2025 harvest, down from 1.024 million hectares last year, the agriculture ministry said.
However, short-term exports of competitive Black Sea supplies continued to hold back the market.
“Very low export prices from Russia and other Black Sea exporting countries continue to weigh on sentiment, as the west of the EU is practically out of the question for exports,” said a German trader.
Subdued Russian prices and a stronger euro have made Western European wheat ineligible for export.
Russian wheat with a protein content of 12.5% was estimated at $217-220 per tonne FOB for October delivery across the Black Sea at the end of last week, Russian analysts said.
On Wednesday, traders were quoting Russian 12.5% wheat for October delivery at US$215-216 per tonne FOB.
“Russian wheat is priced well below the $220 FOB level and about $35 per ton cheaper than in the western EU, so we have no realistic chance of getting major export sales in the near future,” another German trader said.
In France, the lowest harvest since the 1980s and mixed milling quality have reduced supply.
Port data compiled by LSEG shows that one vessel was due to load 30,000 tons of wheat for Morocco this week, with traders assuming that stocks from last year’s harvest will be used, as with other cargoes this season.