CBOT Wheat Futures Slide Below $7 Per Bushel Amid Diplomatic Efforts

Grain futures on the Chicago Board of Trade (CBOT) fell on Friday due to diplomatic efforts to ease war disruptions to Black Sea grain exports. Analysts said a lack of details about new agricultural deals during a US-China summit also weighed on prices.

The most actively traded wheat contract dropped below $7 per bushel for the first time in a month, as expectations grew for a recovery in Black Sea shipments crippled by Russia's war on Ukraine.

Mike Castle, senior commodities economist at StoneX, noted that there has been 'a notable increase in mediation efforts for commodity movement through the Black Sea'. He emphasized that the focus is on shipping itself, not making it part of a broader peace agreement.

CBOT wheat prices were down 7.5 cents at $6.99.5 per bushel by 11:50 a.m. CDT after setting the lowest price since August 19 at $6.83.5. Despite market skepticism over prospects for Black Sea shipments, large long positions held by investors and a cautious approach by wheat importers have removed support from prices.