The benchmark European wheat price rose for the fifth session in a row on Thursday, reaching a record high of three weeks. This was due to the fall of the euro against the dollar as well as a Russian missile attack against Ukraine that kept the attention on the war risks within the Black Sea export area.

The gains, however, were modest, curbed in part by the lack of an immediate disruption of the shipments of Russian and Ukrainian wheat at competitive prices through the Black Sea.

Kyiv said that Russia fired an intercontinental missile on Thursday. Later, Moscow confirmed it was a medium range hypersonic missile. It had been used as a response to Ukraine firing Western missiles onto Russian territory earlier this week.

In a recent note, British merchant ADM Agriculture stated that the escalation of tensions in the Black Sea has reignited markets.

The outcome of this war will be closely watched, particularly with Donald Trump as the new U.S. President starting in January and his promise to end it as quickly as possible.

The euro has fallen to its lowest level in a year against the dollar, making grain from western Europe cheaper abroad.

The Black Sea prices are still the best on export markets. There was also talk that Russian wheat shipment may not be as slow as expected in November, and could still reach 5 million tons.

On Thursday, Russian wheat with 12.5% protein for December shipment was priced at $227-228 per ton FOB. This is up $1 from Wednesday. Russian 11.5% wheat cost $218-$220, while Ukrainian 11.5% was $225-$228.

One German trader stated that "geo-political tensions over the Ukraine War are supportive, and the euro's weakening is also welcomed. However, I think the rises will be limited by the cheap Russian and Ukrainian price,"

The Russian wheat market was expected to take a significant share of the up to one million tons that Moroccan importers have booked since late October. This has dampened expectations for a recovery in French exports.

LSEG data showed that five vessels are currently scheduled to load wheat bound for Morocco in the northern French port Rouen.

On Wednesday, French farmers gathered in Rouen to protest the unloading a cargo from Canada of rapeseed. This was part of a larger action which also saw farmers blocking access to Bordeaux port in the southwest.

The price of February rapeseed at Euronext fell 3.9% to 510.75 Euros per ton, as the oil seed markets in North America were hit by losses. Profit-taking was encouraged after this week's near-two-year-high on Euronext.

(source: Reuters)