European Wheat Prices Extend Gains ahead of Holiday Break

European wheat prices edged higher on Wednesday, extending their recent rebound as geopolitical and weather-related concerns supported the market, while trading activity remained subdued ahead of the year-end holiday period, traders said.

The most active March wheat contract on Euronext in Paris rose by 0.1 percent to €189.25 per metric ton, after touching €189.75, its highest level in nearly two weeks. The benchmark contract is now on track for a fifth consecutive daily gain, gradually recovering from last week’s record low of €185 per ton.

The upward momentum has been partly driven by renewed concerns over security in the Black Sea region, following intensified Russian attacks on Ukrainian ports that have disrupted grain shipments from Ukraine, one of the world’s leading wheat exporters. These developments encouraged investors to cover short positions, a common move ahead of year-end holidays.

Similar sentiment supported US markets, where wheat futures on the Chicago Board of Trade also rose for a fifth straight session, reflecting comparable geopolitical and weather risks.

Weather conditions added to market support as a severe cold wave swept across parts of Russia this week, prompting some investors to reassess risks to the country’s winter wheat crop. Analysts noted, however, that existing snow cover could provide temporary protection against frost damage, limiting immediate concerns.

Despite these supportive factors, gains in European wheat prices remained modest. A stronger euro against the dollar continued to weigh on the competitiveness of European grain exports at a time when global markets are well supplied. In addition, ongoing harvests in Argentina and Australia are expected to boost export availability during the remainder of the 2025/2026 season, adding further pressure to prices.

In Russia, authorities announced plans to impose a grain export quota of 20 million metric tons between February 15 and June 30, double the volume set for the same period last year, signaling ample supply despite slower exports earlier in the season.

Trading volumes are expected to remain limited in the coming days, with Euronext set to close early on Wednesday and remain shut on Thursday and Friday for the Christmas and Boxing Day holidays.