European wheat sees strongest gains in over 8-months
• Wheat rebounds after early tariff driven sell off
• Geopolitical tensions spark broad commodity short covering
• Odessa port disruptions escalate, slowing grain flows
• Algeria returns with first wheat tender in weeks
• London wheat breaks above 50 day moving average
Wheat prices edged higher as grain markets shrugged off US tariff uncertainty, and joined other commodities in buying encouraged by geopolitical uncertainty.
The US Supreme Court’s ruling on Friday that President Donald Trump had exceeded his authority by implementing tariffs under laws designed for use in national emergencies spurred some initial selling in grains.
Soybeans proved especially vulnerable, amid ideas that the court decision had stripped Mr Trump of some of his bargaining power in forthcoming trade talks with China, the top importer of the oilseed.
However, grain prices recovered later in the session, amid broad commodity buying spurred by concerns that tensions between the likes of Russia and Ukraine, and Iran and the US, spelled supply interruptions.
The Bcom index gained0.7%, posting a fourth successive positive session, helped by gains in the likes of heating oil, gold and silver.
Conflict between Ukraine and Russia, two of the world’s top wheat exporters, was evident in a 28% rise year on year in attacks on Ukraine’s key Odessa port region, according to monitoring group Acled.
Odessa port reported last week that thanks to air attacks and bad weather just 300 wagons were unloaded on Thursday, compared with a daily average of 1,170 wagons, with only 690 expected to be unloaded on Friday.
The queue of wagons waiting to unload has expanded above 11,000 cars.
Meanwhile, in a sign of market demand, major importer Algeria on Monday unveiled a tender, its first in five weeks.
Chicago soft red winter wheat for May-26 added 0.2% in late morning deals in Chicago, although Paris milling wheat futures for May-26 retreated 0.6% on profit-taking after last week recording their strongest weekly performance since June, spot basis.
London feed wheat for May-26 added 0.8% in late deals to trade above its 50-day moving average for the first time in three months, playing catch-up with Paris’s late-week performance. Earlier, the contract also touched the much-watched £170.00/t mark.
Rapeseed for May-26 headed for the close up 0.4% in Paris, buoyed by earlier headway in Brent crude to $72.50/Bbl, although oil price gains petered out in later deals.
