Wheat Hits Near 2-Month Low

Wheat prices plummeted to a near two-month low of $6.70 per bushel in mid-October, marking the lowest point since August 18. The price drop came after US President Donald Trump announced a ceasefire, sparking optimism for a truce in the Black Sea region. Trump claimed that Russia and Ukraine had reached an immediate "energy ceasefire," while Ukrainian President Volodymyr Zelenskyy stated that Kyiv supports the ceasefire but remains "awaiting details."

Traders will closely monitor confirmation from Moscow and Kyiv, as well as indications that the agreement might lead to a wider de-escalation. Given that Russia and Ukraine represent over a quarter of global wheat exports, the Black Sea plays a vital role in worldwide supplies. Simultaneously, Asian wheat millers are reducing forward purchases as prices rise, and the ongoing disruptions in the Black Sea are limiting the flow of supplies from a pivotal exporting area.

Some millers in Southeast and South Asia are relying solely on deliveries through December, or even closer to it, according to traders and processors.