Paris wheat slips as more Russian and Ukrainian exports seen via new routes

what happened

European wheat edged lower in subdued trade on Monday as market participants assessed the chance that more Ukrainian and Russian grain would reach buyers through alternative routes. The December milling wheat contract on Euronext in Paris ended the day at 16:30 GMT down 0.1% at €243.50 ($272.89) a metric ton.

Russia has been building high-volume non-traditional export routes, mainly through the Baltic Sea. This followed a near halt in shipments from Azov-Black Sea ports, caused by attacks on vessels and damage to terminals. Analyst Sovecon raised its October wheat export forecast to 2.8 million tons, while IKAR cut its estimate to 2.6–2.9 million tons. About 65% of Russian wheat shipments in October are expected to leave via Baltic ports.

Ukraine is also looking to expand grain transit through Eastern European countries. President Volodymyr Zelenskiy asked Poland, Romania, Slovakia and Hungary to increase transit of Ukrainian cargoes because of the Black Sea blockade, Hungary's prime minister said.

why it matters

Shifting exports to new routes adds grain supply to world markets and reduces logistics risks, which weighs on European wheat prices. Crop conditions in Western Europe, where some rain is forecast, also remain in focus.

market impact

Wheat and grain futures: more Russian and Ukrainian supply via new routes puts pressure on prices

tags

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