Euronext wheat declined for a second consecutive day on Tuesday, in line with Chicago. Concerns over the escalation of Russia's conflict with Ukraine have subsided as traders return to the export competition due to cheaper Black Sea products.

The December wheat price on Paris' Euronext fell 0.6% to 219.25 euros ($243.83). This is a further drop from the previous month's high of 228.00 euro.

Chicago wheat was also down in U.S. trade after a nearly 3% decline on Monday, when it retreated on Friday from a high of three months.

Last week, wheat markets rose as rising tensions on the international stage, including a missile attack on a grain ship that Kyiv blamed on Moscow, and adverse weather conditions raised concerns about supplies in the crucial Black Sea export zone.

The rally was cooled by the lack of further escalation, and new indications that Russian Wheat remains competitive in export.

Analysts reported that the prices of Russian wheat were not changed much last week. The 12.5% protein crop was mostly sold below $220 per ton, free on board. Russian export volumes, however, are expected to be strong in September despite being down from their record high in August.

A French dealer stated that "Russian wheat did not move during the rally of futures." Prices can't continue to rise without the Russian market.

The adequate global supply has diverted attention from the rain-damaged harvest in Western Europe. This includes the smallest French production since the 1980s.

The French agriculture ministry cut its estimate for the main wheat crop in France to a low of 25,78 million tons on Tuesday, moving closer with other market estimates.

The European Commission published data showing that soft wheat exports in the European Union had fallen 23% since the beginning of the season 2024/25, which began in July. However, figures for France, Bulgaria and other countries were not complete. Reporting by Gus Trompiz, Editing by Tasim Zaid.

(source: Reuters)