European wheat prices rise on weaker euro and Black Sea concerns

Wheat futures on the European Euronext exchange rose on Friday, November 6, supported by a weaker euro against the US dollar and ongoing risks to grain trade in the Black Sea region. December milling wheat futures in Paris gained 0.9% to €225/t ($250.88/t). The depreciation of the European currency improved the competitiveness of EU wheat on the global market, while traders continued to monitor developments in the Black Sea and strong export shipments from France.

Additional support for wheat prices came from buying by investment funds. Meanwhile, contracts for later delivery months edged lower. The US dollar strengthened following the release of stronger-than-expected US employment data, putting further pressure on the euro.

Amid changes in global grain trade, Euronext also announced plans to launch Black Sea wheat and corn futures contracts in 2027. The new instruments will provide for physical grain delivery to the Romanian port of Constanța, one of the key logistics hubs in the Black Sea region.

The launch of these contracts will allow Euronext to expand its presence in Black Sea grain trading, while its existing instruments have historically been focused primarily on the French market. The exchange had previously considered adding Romanian delivery points to its existing corn futures contract but now plans to introduce separate instruments for Black Sea grain.

In the longer term, the new futures contracts could become an additional price benchmark for grain traders and exporters in the Black Sea region, including Ukraine. Meanwhile, further movements in European wheat prices will depend on currency fluctuations, the pace of EU exports and developments affecting maritime security in the Black Sea.

Tags: prices, wheat, EU