Wheat futures fell below $7.20 per bushel, extending their pullback from the 3-1/2-year high of $7.67 reached on August 28, as markets weighed renewed diplomatic efforts to end the Russia–Ukraine war. Over the weekend, US envoys held talks in both Russia and Ukraine, including meetings with Ukrainian President Volodymyr Zelenskyy and senior European officials. These discussions have raised hopes that a potential ceasefire could help normalize disrupted grain shipments from the Black Sea, adding downward pressure on wheat prices.
Nonetheless, substantial uncertainty persists. Ongoing attacks by both Russia and Ukraine on ports and commercial vessels continue to severely limit grain exports from the region. While wheat supplies in the Black Sea remain available, exporters still face major logistical obstacles in moving cargoes to global markets. As a result of the disruption, Asian buyers have increasingly turned to alternative origins, with trade sources reporting recent purchases totaling at least 500,000 metric tons of Australian and Argentine wheat.
