Written Commentary
London Wheat Report
What a day. Grains rallied sharply on reports of an escalation of attacks between Russia and Ukraine in the Black Sea as strikes on ports and ships continue mounting, supported by crude oil, which surged by 4% during the morning to just short of $95/barrel. European wheat markets responded by posting new highs, with Euronext closing 9.75 EUR higher on the day to close at 244.50 EUR, which is the highest front-month price since June 2024. US markets were equally firm, trading back above $7/bushel in Chicago.
The EU Commission reported soft wheat exports from the EU down 46% y.o.y to 466,908 mts in the period from the beginning of this month until July 19. Leading export destinations included Nigeria, with 22% of the total, Indonesia and Angola. Barley exports declined 83% y.o.y to 189,929 mts whilst imports also dropped sharply. On the import side of the equation, maize imports rose 20% y.o.y to 757,869 tons.
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