Story
Euronext Wheat Retreats From Two-Week High on Black Sea Ceasefire Report
Euronext wheat prices retreated from a two-week high on Thursday following a report that Kyiv has proposed a ceasefire on attacks against civilian targets in the Black Sea. The news tempered market fears about potential disruptions to grain exports from the critical shipping region.
Market Reaction
The most active December wheat contract (BL2Z6) on Euronext had earlier climbed to €237.25 per metric ton, its highest price since July 30. Following the report, it pared gains to trade just 0.1% higher at €233.25 ($269.08) per ton by 1541 GMT, according to Investing.com data.
The front-month September contract (BL2U6) experienced greater volatility. It initially surged as much as 3.7% to €228.75, a high not seen since July 31, before reversing course on the ceasefire news. The contract later stabilized to finish the session 1.4% higher at €223.50.
AdGeopolitical Context
Recent price strength in the wheat market has been driven by an escalation of attacks in the Black Sea by both Russia and Ukraine. These hostilities have raised significant concerns among traders about the security of shipping lanes and the flow of grain from two of the world's largest wheat exporters.
The report of a potential ceasefire, even if unconfirmed, was sufficient to cause a pullback in prices as it suggests a possible de-escalation that could secure shipment volumes. The stability of the Black Sea corridor is a key factor for global grain supply and pricing.
Read next
More on Commodities
U.S. Crude Inventories Post Surprise Draw While Gasoline Stocks Swell, EIA Reports
U.S. crude oil stockpiles fell unexpectedly last week, driven by a surge in exports, while gasoline inventories saw a significant build amid weakening demand, according to the latest EIA data.
UBS Raises Year-End Brent Forecast to $110 on Middle East Supply Risks
UBS has increased its year-end forecast for Brent crude to $110 per barrel, citing escalating supply risks in the Middle East, declining global inventories, and record-high freight costs.
Iran Dismisses Latest Qatari Peace Proposal as 'Unacceptable'
A senior Iranian official has rejected the latest Qatari-mediated draft deal to end the eight-month war, calling the ideas 'unacceptable' and signaling a continued diplomatic impasse. The news comes amid rising oil prices following attacks on Saudi energy infrastructure.
Argentina Poised to Gain EU Soymeal Market Share as Deforestation Rules Hit Brazil
Argentina's soybean industry is preparing to capture a larger share of the European Union's soymeal market as new EU anti-deforestation rules are expected to disrupt exports from rival Brazil.