Wheat falls to an 11-week low amid talks on the war in Ukraine
Kyiv • UNN
Wheat declines for the fifth consecutive day amid talks on the war in Ukraine and weak demand for U.S. exports. The price fell to $6.4075 per bushel.
Wheat futures reached their lowest level since August 5, an 11-week low. This came as traders reduced risk premiums after "U.S. President Donald Trump increased pressure on Ukraine to reach a peace agreement with Russia," Bloomberg reports, writes UNN.
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The most-active contract fell 0.5% on Wednesday, October 21, declining for a fifth consecutive day after, the publication writes, "at new talks with U.S. envoys, Ukrainian President Volodymyr Zelenskyy tried to set a conciliatory tone." Despite this, the publication notes, "Trump remained critical," saying that the United States had "received nothing in return" for its support for the country, and that "it is time to make a deal."
Grain traders are closely monitoring talks on ending Russia's war in Ukraine, as "an escalation of strikes in the Black Sea since July has damaged shipping infrastructure and disrupted wheat exports from the world's two largest producers."
Any steps toward a ceasefire could potentially release large volumes of wheat from both Russia and Ukraine that are awaiting sale, increasing supply and leading to a decline in the market, the publication notes.
However, on Wednesday, consulting firm Lachstock Consulting warned traders against "complacency" regarding the outcome of the situation in the Black Sea, highlighting the current risks to supplies.
Weak demand for U.S. exports and the harvest in the Southern Hemisphere increased pressure on wheat futures this week, reinforcing signals from funds that last week raised their net bearish bets (positioned for a decline in value) to a three-month high.
As of 12:03 a.m. on October 21 in Singapore, the price of wheat had fallen 0.4% to $6.4075 per bushel.
The price of corn fell 0.2% to $4.61 per bushel, while the price of soybeans was little changed.