Wheat inches up from near four-month low, Black Sea exports in focus

Wheat prices rebounded on Thursday, climbing from a near four-month low that was reached earlier in the week. The boost in prices came after Russia permitted grain export vessels to pass through the Sea of Azov, a move that had been halted since July 10 due to Ukrainian drone attacks. This development, which allowed shipments to proceed through the Kerch Strait, boosted supply prospects and provided a much-needed reprieve for wheat traders.

During the same period, soybean prices slipped, while corn prices were largely unchanged. The pressure on both soybeans and corn was attributed to an abundant harvest in the United States, which increased supply and put downward pressure on prices. According to one trader based in Australia, the wheat market had already absorbed much of the gains from the Black Sea supply issue, and traders believed that the current price levels were stabilizing.

The most-active wheat contract on the Chicago Board of Trade (CBOT) increased by 0.1%, closing at $5.99-1/2 per bushel. Prior to the recent surge, the wheat price had hit its lowest point since early July on Wednesday. In addition, EU soft wheat area for the upcoming harvest was reported to have declined.

Russian authorities granted permits for grain export vessels to leave the Sea of Azov, a development that had not taken place since July 10. The permits would remain valid through November 15 and would include approval for a Russian naval convoy to escort the grain vessels through the Black Sea. Two sources also revealed that the Russian naval convoy would accompany the vessels throughout their journey through the Black Sea.

Despite these positive developments, US harvest supplies continued to exert downward pressure on CBOT soybean and corn prices.