Euronext Wheat Hits Three-Week High on Weak Euro and Saudi Deal

Euronext wheat futures rose 1.5% to €245.25 ($274.90) per metric ton by 1509 GMT, touching a three-week high driven by a weaker euro, ongoing Black Sea shipping disruptions, and a major Saudi Arabian grain tender.

The December milling wheat contract on the Paris-based Euronext exchange marked its third consecutive session of gains. Prices reached €246.25 earlier in the trading day, registering the strongest level recorded since September 10.

Currency Tailwinds and Saudi Demand

The rally in European grain markets found support in currency movements as the euro fell to a 17-month low against the US dollar at $1.12. This currency depreciation enhances the international competitiveness of European grain for overseas buyers.

Adding to the demand side, Saudi Arabia purchased 683,000 tons of wheat in a recent international tender. The substantial volume injected fresh demand into the global physical market.

Black Sea Shipping Risks

Market participants also monitored supply chain vulnerabilities as Black Sea shipping risks remained in focus. Reports emerged that a cargo ship sank in the region following what Ukraine attributed to Russian drone activity.