Wheat holds near $7.65, at highest since early Feb 2023

Wheat traded near $7.65 per bushel, holding near the highest level since early February 2023 as Russia-Ukraine tensions continue to escalate.

The market remains affected by growing sensitivity to war-risk premiums and speculative positionings following soaring prices due to persistent attacks from Ukraine and Russia, who account for more than a quarter of global exports, on commercial vessels that continue to threaten global supplies.

Additionally, Russia has suspended the floating export duty on wheat through the end of 2026, as its wheat exports fell more than 50% in August compared to last year, and while able to use its Baltic port, limited capacity remains a long-term issue.

Ukraine's wheat exports also fell substantially, by 34% year-to-date, while the UAC expects further disruptions on its ports.

Turkey's president stated a mechanism was needed to permanently ensure the safety of maritime transit, while Russia's foreign minister stated he was no grounds for such a deal.