Wheat Prices Spike on Fading Hopes for Ukraine Diplomatic Breakthrough
The price of wheat futures rose on Tuesday after diplomatic efforts by the US to end the war in Ukraine faltered. The Chicago Board of Trade saw its most-traded wheat contract increase by 4-3/4 cents to $7.38-3/4 per bushel.
US envoys Jared Kushner and Steve Witkoff met with Russian President Vladimir Putin over the weekend, but their meeting did not yield a breakthrough in ending the war or resuming Ukrainian and Russian grain exports. Ukrainian President Volodymyr Zelenskiy stated that the US negotiators presented several 'decent ideas' during the talks.
Tit-for-tat attacks by Russia and Ukraine on each other's ports and shipping have severely disrupted Black Sea grain exports, prompting buyers to seek alternative suppliers. Asian wheat importers have recently purchased at least half a million metric tons of Australian and Argentine wheat in deals.