Wheat falls 2% on hopes for a Black Sea ceasefire

Wheat futures on the Chicago Board of Trade (CBOT) fell more than 2% on Friday, September 25, dropping to their lowest level in about a month. Prices came under increased pressure amid expectations of a possible resumption of exports through the Black Sea.

The December wheat contract fell 14.75 cents, or 2.1%, to $6.925 a bushel. For the week, the contract is set to lose about 2.4%.

The market is being influenced by diplomatic efforts to potentially restore safe shipping in the Black Sea. The talks concern arrangements that could ensure the unimpeded movement of civilian vessels and stabilize grain exports from the region. The prospect of renewed Black Sea shipments is increasing expectations of greater wheat supplies on the global market.

Another factor for the market is the US-China talks. Traders are assessing the prospects for trade agreements and potentially higher Chinese purchases of US agricultural products, which could affect global trade flows.

Wheat prices are also under pressure from weak US wheat export sales. The market is also focused on the pace of the new crop harvest and available stock levels, which is limiting buyer activity.

Tags: prices, Black Sea region, wheat