Platts Wheat Marker hits 13-month low amid Black Sea disruptions, weak demand

The Platts wheat benchmark, Milling Wheat Marker, hit a 13-month low of $225.50/metric ton on August 4 for September loadings, due to weak demand and security risks in the Black Sea. Ship calls at Russian and Ukrainian ports dropped sharply due to intensified attacks, disrupting trade. Russian exporters offered wheat at $224/mt, while sellers charged a $3/mt premium.

Shipments faced logistical challenges, with vessels avoiding ports in Russia and Ukraine. Strikes along the Don-Azov route and Kerch Strait prevented one major destination, Turkey, from receiving wheat. The ruble's depreciation to 80 rubles/$1 further complicated the market. Despite Baltic ports offering some options, Ukrainian deep-sea ports saw no firm buyers.

Egyptian buyers showed interest, accepting prices of $267/mt for 12.5% protein wheat and $265/mt for 11.5% coasters. However, imports to Egypt dropped significantly due to ample domestic stock, Black Sea disruptions, and high freight costs.