Source: APKinform (Ukraine)
On March 6, trading on the Euronext exchange saw European wheat futures dip to a six-month low, influenced by a notable rise in the euro’s value against the U.S. dollar and the uncertainty surrounding the impact of U.S. tariffs imposed on several nations.
Specifically, the May wheat contract saw a price decrease of 0.2%, landing at 223 euros per ton, marking a new six-month low since reaching this level on August 28, 2024. The price even touched 220.5 euros per ton, but by the end of the trading session, it partially regained some of its earlier losses, thanks to rumors of the U.S. potentially lowering tariffs on specific imports from Canada and Mexico.
Moreover, traders have pointed out an improvement in export prospects for European wheat, as competition from the Black Sea region has diminished.
“African buyers are now looking at U.S. wheat due to its rising appeal, even though Black Sea export prices have surpassed European rates,” remarked one trader from Germany.
Market players have noted that FOB prices for U.S. hard red winter wheat are approximately comparable to those in Germany and the Baltic region, while soft red winter wheat transported through Gulf of Mexico ports is significantly cheaper than Russian and European wheat.