Market Overview
Euronext wheat prices advanced on Friday, delivering a weekly gain of approximately 1.6%. The December wheat contract increased 1.3% to €235.75 per metric ton at 1553 GMT, after touching a two‑week high of €237.50. September futures were the strongest, rising 2.5% to €227 per ton, while the front‑month contract received additional technical support ahead of its upcoming expiry. In the United States, Chicago wheat futures climbed around 3%, a move reinforced by a decline in the U.S. dollar.
Geopolitical Drivers
Ukraine’s military reported striking Russia’s Novatek gas‑condensate processing complex at the Baltic port of Ust‑Luga, and Russia rejected a proposed Black Sea truce, heightening market anxiety. Ongoing attacks on shipping by both sides in their four‑and‑a‑half‑year war have curtailed grain shipments, notably from Russia’s principal export hub at Novorossiysk. The strike on the Baltic port has prompted questions about alternative routes for Russian grain exports.
Market Implications
The combination of technical price support, a weaker dollar, and heightened geopolitical risk has pushed wheat contracts on Euronext and Chicago higher, reflecting investor concerns over potential disruptions to Black Sea grain flows.