European wheat prices fell on Thursday, after reaching contract highs in the previous session. Traders assessed Morocco's decision to extend its import duties as well as the current situation?in?the Black Sea following attacks by Russia and Ukraine.

The price of front-month 'September milling wheat, traded on the Paris-based Euronext exchange, fell 0.8% to EUR242.5 ($275.84), after earlier trading reached EUR245.75. The country's Agriculture Minister said that shipowners had temporarily suspended vessel arrivals in Ukraine's Black Sea port for agricultural exports following a recent spike in Russian attacks against?ports, merchant shipping and other areas.

"Markets are assessing what the impact ?will be on both Russian and Ukrainian wheat exports in the key July/August/September period as the ?Black Sea new crop arrives," a German trader said.

Some shipowners refused to send their bulkers into Russian Black Sea Ports including Novorossiysk because of the war risk.

Market operators confirmed that loadings at Novorossiysk's large terminals continued as usual on Thursday. This eased market concerns.

Another German trader asked: "The question then is how much Ukrainian and Russian wheat will be delayed, reduced or moved to other countries as a result of the fighting?"

Market?talk suggests that Russia and Ukraine could contribute up to 4-6 millions tons in the initial stages."

He added that buyers were willing to wait until harvests arrived in other importing countries, such as Egypt, before they made any purchases. Morocco, France's biggest export market for wheat will continue to maintain a duty on soft 'wheat' until August 31. This effectively extends a halt on imports aimed at protecting the harvest in the country, said the heads of Morocco's grain traders' association (FNCL), and millers' federation (FNM).

The authorities had introduced a 170% duty on imports from June 1 to July 31, to discourage imports and to prioritise the marketing of local harvests.

(source: Reuters)