Euronext Wheat Hits Two-Year High as Black Sea Tensions Disrupt Shipments

European benchmark wheat futures climbed to a new two-year high on Wednesday, as intensifying conflict in the Black Sea region severely curtails grain shipments from key exporters Russia and Ukraine, raising concerns over global supply.

Price Action

The December milling wheat contract on the Paris-based Euronext exchange settled up 1.3% at €256.75 ($297.57) per metric ton. During the session, the contract reached an intraday peak of €259.25, its highest level for a second-month contract in two years.

The rally in Europe mirrored strength in U.S. markets, where Chicago wheat futures hit a 3-1/2-year high. According to traders cited in reports, the upward momentum in wheat was also supported by strong prices in crude oil and corn markets.

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Black Sea Disruptions

The price surge is directly linked to the escalating military actions in the Black Sea. Recent attacks have reduced grain loading operations at Russian and Ukrainian ports to nearly zero, effectively halting a critical supply channel for global importers.

Diplomatic efforts to secure safe passage for grain vessels have so far failed. A proposal by Turkey to broker a new grain deal was reportedly rejected by Moscow, while both Russia and Ukraine continue to target each other's port and shipping infrastructure. This has forced major grain importers to scramble for alternative sources, tightening the market and pushing prices higher.