Wheat Holds at 15-Week Low
Wheat held near $6.30 a bushel, close to their lowest level since July 9, as US-led diplomatic efforts to end the Russia-Ukraine war raised hopes of a resumption in Black Sea grain trade. Russian President Vladimir Putin signalled readiness to resume trilateral peace negotiations with the US and Ukraine in early November, easing some of the market’s geopolitical risk premium. Also, Russia increased shipments through alternative routes, including Baltic ports. However, Black Sea disruptions persist, with attacks continuing in the region. Ukraine’s agriculture minister forecast an 18% decline in winter-wheat planting as farmers prepare for next year’s harvest. Meanwhile, demand for major exporters remains subdued, with US wheat sales below expectations in the week ended October 15. Increasing harvests in Australia and Argentina are adding to near-term supply. Global wheat production is expected to reach its second-highest level on record, further easing concerns over availability.
Wheat held near $6.30 a bushel, close to their lowest level since July 9, as US-led diplomatic efforts to end the Russia-Ukraine war raised hopes of a resumption in Black Sea grain trade. Russian President Vladimir Putin signalled readiness to resume trilateral peace negotiations with the US and Ukraine in early November, easing some of the market’s geopolitical risk premium. Also, Russia increased shipments through alternative routes, including Baltic ports. However, Black Sea disruptions persist, with attacks continuing in the region.
Ukraine’s agriculture minister forecast an 18% decline in winter-wheat planting as farmers prepare for next year’s harvest. Meanwhile, demand for major exporters remains subdued, with US wheat sales below expectations in the week ended October 15. Increasing harvests in Australia and Argentina are adding to near-term supply. Global wheat production is expected to reach its second-highest level on record, further easing concerns over availability.