Wheat Prices Record Steepest Monthly Decline in Over Two Years
(MENAFN) Wheat prices fell sharply by 12.7% in September, dropping to $6.75 per bushel and marking their largest monthly decline since June 2024. The downturn followed an intramonth high of $7.95, as prospects for a Russia-Ukraine peace agreement, favorable weather and weaker demand weighed on the market.
Weather patterns and geopolitical developments continued to shape global wheat supply and demand. Despite September’s losses, prices remained approximately 35% higher than at the beginning of the year, after January ended at around $5 per bushel.
Commodity and futures market specialist Zafer Ergezen said earlier price increases had been driven by concerns over potential disruptions to grain shipments from the Black Sea region. However, market sentiment subsequently shifted as relations between the United States and Russia showed signs of improvement, according to reports.
“Along with the El Nino effect being weaker than expected, a short-term weakening of US wheat exports and concerns over a global economic growth slowdown are among the main drivers pulling wheat prices down,” he said.
Falling prices for Russian and Ukrainian wheat also left US supplies comparatively expensive against European alternatives, reducing international demand for American wheat.
“American wheat was expensive due to the stronger dollar, driving up the dollar cost of wheat, which is among the factors that made European wheat more attractive,” he added.
Weather patterns and geopolitical developments continued to shape global wheat supply and demand. Despite September’s losses, prices remained approximately 35% higher than at the beginning of the year, after January ended at around $5 per bushel.
Commodity and futures market specialist Zafer Ergezen said earlier price increases had been driven by concerns over potential disruptions to grain shipments from the Black Sea region. However, market sentiment subsequently shifted as relations between the United States and Russia showed signs of improvement, according to reports.
“Along with the El Nino effect being weaker than expected, a short-term weakening of US wheat exports and concerns over a global economic growth slowdown are among the main drivers pulling wheat prices down,” he said.
Falling prices for Russian and Ukrainian wheat also left US supplies comparatively expensive against European alternatives, reducing international demand for American wheat.
“American wheat was expensive due to the stronger dollar, driving up the dollar cost of wheat, which is among the factors that made European wheat more attractive,” he added.
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