HAMBURG: Euronext wheat fell to near a one-year low on Monday after a wartime shipping corridor for Ukrainian grain exports was extended, while traders also reacted to jitters on financial markets after the rescue of Swiss bank Credit Suisse.

May milling wheat, the most active wheat contract on the Paris-based Euronext, fell 1.6% or 4.25 euros to 261.25 euros ($279.90) a tonne at 1556 GMT. It earlier hit 260.50 euros, just above last week’s one-year low of 260.25, but again held chart support around that level.

The deal allowing the safe export of grain from Ukrainian Black Sea ports was renewed on Saturday but Russia said it only agreed to a 60-day extension. “The market anticipated that the corridor would be extended and you can see that looking at prices. But the situation isn’t resolved and the uncertainty has been pushed back,” said Arthur Portier of consultancy Agritel. Traders stressed the deal would mean continued tough competition to EU wheat in export markets.

“Ukrainian wheat is very cheap with supplies available and now they will be shipped out at least for the next two months,” one German trader said. “With the new crop only around four months away, it looks like the EU may face tough competition from Ukraine and Russia in export markets for the rest of the season.” Standard 12% protein wheat for March delivery in Hamburg was offered for sale at about 1 euro over the Euronext May contract with buyers seeking about 1 euro under.

Turmoil in the banking sector and a sharp rise in the euro against the dollar curbed Euronext prices, dealers said. Euronext rapeseed extended losses to a new two-year low. May rapeseed fell 2.3% to 456.25 euros a tonne, after earlier touching the lowest front-month price since February 2021 of 455.00 euros.