Wheat prices averaged USD 589 cents per bushel in September, which was down 4.0% from August’s price and 31.6% lower year on year. Additionally, on 29 September, wheat traded at USD 542 cents per bushel, 5.5% lower month on month. Encouraging supply developments likely drove the decline.
In the last few weeks, cargo ships have begun sailing to and from Ukraine via a “humanitarian corridor”, with 12 vessels reportedly ready to enter the corridor in early October. This comes despite the collapse of the Black Sea grain deal in July and bodes well for wheat supply, given Ukraine is a key global producer. Moreover, in October, Ukraine reached a deal with Poland and Lithuania to expedite Ukrainian grain exports via a Lithuanian port, further supporting the supply picture. In addition, the U.S. Department of Agriculture recently put the size of the U.S. wheat harvest above market expectations.
Wheat CBOT (prices in US¢/bu, aop)
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