Euronext wheat prices rose on Monday after recovering from a three-week low. The rise was due to the fact that war risks in the Black Sea grain trade offset pressure from lower oil prices.

The?most active position in December wheat on the Paris-based 'Euronext' ended the daytime trading session up 2% to EUR232.75 ($267.78).

The previous day, it fell to EUR226.5. This was its lowest level since July 15. It continued the sharp decline from Friday.

Euronext was also boosted by a rebound in Chicago wheat prices and a easing of the euro against the dollar after it reached?a high for 1-1/2 months.

The European market rallied in July, as Ukraine and Russia intensified their attacks on each others' shipping routes. This disrupted grain shipments from the Black Sea.

A futures trader stated that the biggest problem is that vessel owners are reluctant in calling at Black Sea ports. If the current situation continues for a month, it is not a problem. "If it continues for three to four months, there will be a serious problem," he stated.

German traders said that price increases today were moderate, considering the continued attacks by Ukraine and Russia against their ports. The reason for the weak import demand may be that North African harvests are arriving in large quantities, allowing buyers such as Morocco, Egypt, and Algeria to have enough supplies to delay purchases.

Algeria's state buying?agency was?expected to tender soon to buy wheat for shipment in September. However, there were increasing rumors that?Algeria might forgo a tender to purchase wheat for shipment in September as?previously anticipated but only tender later to purchase for shipment in October.

The November contract for Euronext Maize rose 2.5%, to EUR249 a ton. This was supported by the weather forecasts that showed little relief from heat and drought in France in early August.

(source: Reuters)