Russia's ambassador to the United Nations said on Friday that Moscow has not been able to export any grain under the Black Sea deal due to Western obstacles, the RIA Novosti news agency reported, echoing criticism this week by Russia's deputy foreign minister. News headlines also raised concerns about an escalating war, as Russia struck
power facilities across Ukraine while neighbouring
Moldova said a Russian missile had violated its airspace.
"Geopolitics is back at the centre of attention," a futures dealer said. "Plus you have weather concerns and short positions in the market."
U.S. wheat futures rose sharply, supported by
concern over the Black Sea export deal as well as uneven rain
forecasts for drought-affected parts of the U.S. Plains. A dry February so far in Europe was also being monitored as
the key spring growing season approaches.
Expectations that Russian wheat could cover most of an
Algerian import purchase this week highlighted recent
competition from Black Sea supplies.
But a lack of visibility on the corridor agreement could
hamper Black Sea trade going forward.
“This uncertainty could be supportive for Euronext in the
near term if there is more hedging using west EU wheat against
the risk that the shipping channel could be stopped,” a German
trader said.
Traders said a Spanish importer had this week sought about
12,000 tonnes of 12.5% protein milling wheat from the Baltic
region for March shipment to Valencia, though the offer was 7-8
euros below selling ideas.
Traders also noted that some grain tenders from Asian
importers are now specifying that ports in Russia and Ukraine
cannot be used and that if Ukrainian corn is supplied, sellers
have no right to declare force majeure due to the war.
($1 = 0.9371 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in
Hamburg; editing by Jonathan Oatis and Diane Craft)
