PARIS — European wheat futures fell 3.2 percent on Thursday as traders took profits following Russian President Vladimir Putin's comments on a potential peace agreement to end the Ukraine conflict. The December milling wheat contract on Euronext settled at EUR248.5 ($289.13), down from an earlier session low of EUR243.25 per ton.
Chicago wheat futures also declined Thursday, retreating from multi-year highs set earlier in the week. The synchronized drop across major markets reflected the sensitivity of global grain prices to Black Sea geopolitical developments.
Putin made his remarks at an economic forum in Russia's Far East, stating that a chance for peace existed. He also cited obstacles to negotiations, including Ukrainian attacks on shipping and Kyiv's directive for aircraft to avoid Russian airspace.
The market's initial optimism proved short-lived. Traders quickly reassessed the substance of Putin's comments and noted they signaled no immediate military de-escalation or direct easing of hostilities. The lack of tangible progress dampened hopes for a near-term resumption of Russian and Ukrainian grain shipments, which have faced a near-halt from the Black Sea.
A German trader said market participants remain acutely sensitive to any news enabling safe grain shipment resumption, but stressed the fundamental supply picture has not changed. "Black Sea grain is not moving away," the trader said, also noting that Middle East conflict has driven crude oil prices higher, adding geopolitical risk to global commodities.
New demand emerged from Saudi Arabia, which issued a tender to purchase 535,000 tons of wheat during the Black Sea shipping disruptions. Traders indicated Russian wheat from Baltic ports could be offered in the tender, though increased freight costs would reduce competitiveness. "I would expect EU origins to compete, especially Romania and Bulgaria, and perhaps North America," another trader said.
Port data from Rouen, France showed a cargo of 33,000 tons of soft wheat bound for Libya, indicating a shift from traditional Black Sea origins as importers adapt to ongoing disruptions.
Wheat prices remain caught between speculative geopolitical signals and persistent supply chain realities. While peace hints can trigger profit-taking from prior rallies, enduring challenges to Black Sea shipping and structural grain demand continue to exert upward pressure on prices.
