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EU Wheat Futures Fall as Traders Assess Impact of Russian Port Attacks
European wheat futures retreated on Monday, paring some of the sharp gains from the previous session, as traders assessed the true extent of disruptions to Russian grain exports following Ukrainian attacks on shipping in the Sea of Azov.
Price Reversal on Euronext
The most-active September milling wheat contract on the Paris-based Euronext exchange fell 1.1% to €213.75 per metric ton as of 1523 GMT, according to market data reported by Investing.com.
This decline follows a significant 5.5% surge on Friday, which was triggered by initial reports of the attacks. The reversal suggests the market is moving from an immediate reaction to a more measured evaluation of the geopolitical developments and their concrete impact on supply chains.
AdBlack Sea Export Risks Weighed
The market volatility stems from Ukrainian attacks targeting Russian tankers and commercial vessels. The incidents occurred in the Sea of Azov, a critical waterway that connects to the Black Sea and handles approximately a quarter of Russia’s grain exports.
According to reports, the shipping route remained restricted on Monday. Commodity traders are now closely monitoring the situation to determine the potential duration and severity of the logistical bottleneck and its effect on Russia's ability to fulfill export contracts.