Wheat Markets Soften on Profit Taking and Disrupted Exports

Global wheat markets have softened after a sharp rally last week due to profit taking following reports that Turkey is working on a possible new Black Sea grain corridor.

Despite no agreement between Russia and Ukraine, physical export disruptions remain significant, with Russian wheat production remaining large but export availability becoming the more important issue.

The global wheat balance remains relatively supportive, with the International Grains Council (IGC) outlook placing world wheat production near 817 million metric tons against consumption around 826 million metric tons, implying another inventory drawdown.