Wheat Market Falls as Black Sea Supply Hopes Grow
Wheat fell to around $7 a bushel, the lowest since August 25, and more than 8% below the 3-1/2-year high of $7.67 reached on August 28, amidst diplomatic efforts to restore grain shipments from the Black Sea. Ukrainian President Volodymyr Zelenskiy said India, Turkey, Egypt and other Middle Eastern countries were involved in discussions on reopening shipping routes, while Turkey has presented Moscow with proposals on maritime security. A ceasefire could allow Russia to rapidly restore as much as 80% of its Black Sea grain-terminal capacity. Ukraine’s grain inventories stood at 24.6 million metric tons on September 1, up 10 million tons from a year earlier, although attacks on ports and vessels continue to hamper exports. Importers in Asia, the Middle East and Africa have increasingly sought alternative supplies. France recently shipped 60,000 tons of wheat to Yemen, while Argentine export commitments have reached their highest level in five years for this point in the season.
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67 reached on August 28, amidst diplomatic efforts to restore grain shipments from the Black Sea. Ukrainian President Volodymyr Zelenskiy said India, Turkey, Egypt and other Middle Eastern countries were involved in discussions on reopening shipping routes, while Turkey has presented Moscow with proposals on maritime security. A ceasefire could allow Russia to rapidly restore as much as 80% of its Black Sea grain-terminal capacity. 6 million metric tons on September 1, up 10 million tons from a year earlier, although attacks on ports and vessels continue to hamper exports.
Importers in Asia, the Middle East and Africa have increasingly sought alternative supplies. France recently shipped 60,000 tons of wheat to Yemen, while Argentine export commitments have reached their highest level in five years for this point in the season.