Euronext Wheat Futures edged up on Wednesday, as the dry weather in Russia and Ukraine is hindering sowing. This has raised early concerns over next year's harvest. However, brisk Black Sea exports kept prices under control.

Euronext's December wheat was trading at 220.50 euro ($245.70), up 0.8%, by 1608 GMT. The contract fluctuated in both directions throughout the session, but remained below Tuesday's peak of 221.75 euro.

Chicago wheat also increased slightly.

A futures dealer stated that financial investors were doing some short-covering, but once they stepped off there was no follow-through purchasing.

Data showed that financial investors increased their net short positions in Euronext Wheat last week.

The price of grain in the Black Sea region is being supported by the drought, but it's still too early to predict any effects on next year's crop.

Sovecon, a consultancy, said that the drought in Russia's key wheat-producing regions has caused winter wheat sowing rates to fall to an 11 year low.

The agriculture ministry reported that farmers in Ukraine have so far sown only 878.800 hectares for 2025, down from the 1.024 millions hectares sown a year earlier.

Short-term exports from the Black Sea of supplies that are competitive remained a barrier to the market.

One German trader stated that "the very low export prices from Russia, and other Black Sea exporters continues to depress the sentiment with the west EU essentially out of the picture."

The strength of the euro and the low prices in Russia have kept western European wheat from being exported.

Russian analysts estimated the price of Russian 12.5% protein grain at $217 to $220 per ton FOB at the end last week for shipment by October Black Sea.

On Wednesday, traders priced 12.5% Russian October wheat shipment at between $215 and $216 per ton FOB.

Another German trader stated that "Russian Wheat is below the $220 FOB price and about $35 cheaper per ton than the West EU, so we do not have any realistic chances in the near term of winning significant export sales."

The French milling industry has reduced shipments due to the lowest harvest in the past 30 years.

Data compiled by LSEG revealed that a vessel would be loading 30,000 tons (or 8974 euros) of wheat to Morocco this week. Traders expected to use supplies from the harvest last year, as they have done in previous loadings this season. ($1 = 0,8974 euros) Reporting by Gus Trompiz and Michael Hogan, Hamburg. Editing by Gareth Jones

(source: Reuters)