Wheat futures dropped to their lowest level since late June, driven by anticipation of upcoming US-led peace talks between Ukraine and Russia. The decline reached as much as 2.4% before recovering slightly. Analysts at the Hightower Report noted that the scheduled Black Sea talks in Abu Dhabi next week are likely to keep prices under pressure in the near term.
The ongoing conflict in the Black Sea region has severely disrupted wheat exports from both Russia and Ukraine, two of the world’s largest grain suppliers. While recent discussions with US envoys have raised hopes for progress in ending the five-year war, skepticism remains about the likelihood of a lasting peace agreement. AgResource expressed doubt in a Friday note, suggesting that resolving the conflict may be more challenging than President Trump has indicated.
In other agricultural trade news, the US Department of Agriculture reported export sales of 136,000 tons of soybeans to China. The Asian nation is nearing its annual target of purchasing 25 million tons of US soybeans, an agreement that extends through 2028. China has been steadily buying soybeans since early July to meet this goal.