PARIS: Euronext wheat futures rose sharply for a second day on Tuesday as the market weighed the risk of a military clash between Russia and Ukraine that could disrupt massive grain flows from the Black Sea region.

Talk that French wheat may regain access to Algeria’s import tenders as a diplomatic row between Paris and Algiers subsides also lent support to Euronext, traders said.

March wheat on Euronext settled up 9.75 euros, or 3.5%, at 290.75 euros ($328.08) a tonne.

In closing trade it hit a session high of 291.75 euros, its highest since Dec. 27.

Chicago wheat made similar gains in US trading to reach a near two-month peak.

Investor worries about a possible Russian invasion of Ukraine intensified on Monday as the NATO alliance said it was putting forces on standby. Moscow denies planning an offensive.

“There’s a lot of stress on the wheat market with the Ukraine situation,” a futures trader said.

Any potential interruption to Black Sea supplies due to military action or related economic sanctions could leave importers scrambling for alternatives, such as European Union and US wheat.

“I think markets are adapting to the possibility that if fighting breaks out in Ukraine it has to be expected that Ukrainian and Russian wheat exports will not be able to flow out normally,” a German trader said.

“Currently it’s a question of all or nothing, either a big crisis or something completely forgotten.”

Traders said a bigger risk for the grain market could be in corn, with Ukraine in the early part of its export campaign and world supplies set to be capped by drought damage in Brazil.

Ukraine is the main corn supplier to the EU, which is a net importer of the feed grain.

European traders were also awaiting a wheat import tender on Wednesday by Algeria to see if discussions between Paris and Algiers to resolve a diplomatic crisis would lead to French supplies being accepted again.

In Germany, standard 12% protein wheat for January onwards delivery in Hamburg was offered for sale at about 10 euros over Euronext March, with little purchase interest visible.