Gus Trompiz and Michael Hogan.

HAMBURG/PARIS – As a Russian invasion reduces supplies of Ukrainian wheat, grain exporters look for alternatives. European Union producers Romanian and France are being used as cover to some local loads, traders reported on Friday.

Grain markets have been rattled by the conflict, with European futures rising to record heights on Thursday as fears of delayed shipments from Russia and Ukraine, who together make up nearly one-third of all world wheat exports. [GRA/EU]

Moscow’s military attack forced Ukraine to close its ports Thursday, and the port remained closed to commercial shipping Friday.

Romania, which is a large grain supplier, also exports via the Black Sea and was not involved in conflict zones, was considered an obvious option as a back-up for merchants.

According to traders, about 400,000-500,000 tonnes of Romanian Wheat and between 200,000 and 300,000. tonnes of Romanian Corn were purchased since fighting began in Ukraine. This was largely to be shipped or loaded immediately in March and April.

Ukraine is an important exporter of wheat to Middle Eastern and Mediterranean countries like Egypt, Turkey and Italy.

“There was increased demand for Romanian wheat with their ports outside the war zone,” one trader said.

“It was mainly from multi-nationals seeking quick supply cover, volumes were substantial on both Thursday and Friday.”

A portion of this demand is thought to be related to sales to Algeria in recent years, where Ukrainian and Black Sea origins are gaining market share.

The huge corn exports of Ukraine supply many customers, including China, Spain and the Netherlands as well as Iran, Iran, South Korea, and Spain.

Traders said that in addition to Romanian corn and small vessels of French corn, some trading companies had also booked French corn vessels to protect nearby shipment to EU destinations such as the Iberian peninsula or the Benelux.

Also, there was talk about buying French wheat to replace Ukrainian stocks. Some traders claimed that hundreds of thousands of tonnes had been reserved, while others cited less immediate volumes due to the availability rival sources like Argentine, which lowered interest in French wheat supplies over longer distances.

Although importers were also interested in German wheat, high prices discouraged significant buying.

Some merchants also waited to see what the outcome of Thursday’s panicked market was.

A trader added that ports in Ukraine would likely reopen quickly if there was an end to fighting.