EU wheat regains ground as Russia-Ukraine attacks continue

PARIS, Oct 22 (Reuters) - Euronext wheat rose on Thursday from a three-week low as fresh attacks by Russia and Ukraine tempered hopes raised by US-led diplomatic talks this week.

December wheat on Euronext settled 0.6% up at €234.25 ($262.92) a metric ton after the main session.

The benchmark contract earlier fell to €232.50, equalling a three-week low from Wednesday when it tumbled more than 3%.

Meetings held by US envoy Steve Witkoff with Ukrainian President Volodymyr Zelenskiy and then Russian President Vladimir Putin had pressured prices by raising expectations of possible de-escalation in the countries' war, which has disrupted Black Sea grain trade.

But attacks continued on Thursday, with Russia pounding Kyiv with ballistic missiles and Ukraine sending hundreds of drones towards Moscow overnight.

"There's a technical rebound essentially and you also have the conflict which remains active," a futures broker said.

Chicago wheat was little changed, holding close to a three-month low. GRA/

Rising Russian exports through the Baltic Sea and the start of Southern Hemisphere harvesting were maintaining supply pressure.

In Argentina, the wheat harvest for the 2026/27 season is expected to total 23.8 million metric tons, up from the 21 million estimated last month, the Rosario Stock Exchange said on Wednesday.

“Overall, the background mood in the wheat market is bearish with ever-larger Russian export volumes from the Baltic Sea, while a large crop from Argentina should start entering the world market in a matter of weeks," a German trader said.

Some analysts expect Russia to export up to 3 million tons of wheat this month as it expands capacity via Baltic routes, despite the threat of long-range Ukrainian attacks.

“Russian exporters say they will soon be offering even more for sale via the Baltic with one Baltic port increasing grain capacity from 200,000 tons to 600,000 tons monthly in coming weeks by using large terminals previously used for chemical exports,” a second trader said.

($1 = 0.8909 euros)