Chicago Board of Trade wheat futures were expected to decline between 6 and 8 cents per bushel when trading resumed at 10:30 a.m. on Wednesday, following a retreat from multi-year highs.
Soft red winter wheat December contracts were trading down 6-3/4 cents at $7.75-3/4 per bushel after reaching their highest level since February 2023 earlier in the session. The pullback came after gains driven by disruptions to grain exports from Russia and Ukraine via the Black Sea.
Ukraine’s grain exports fell approximately 58% in August compared with the same month a year earlier, according to the country’s agriculture ministry. The decline reflects ongoing challenges to maritime transport in the region amid geopolitical tensions.
Russia, the world’s largest wheat exporter, separately announced it would suspend export tariffs on grain until the end of 2026. The move follows criticism from Turkish President Recep Tayyip Erdoğan, who called for a permanent mechanism to ensure the safety of commercial shipping in the Black Sea.
Russian Foreign Minister Sergey Lavrov stated there was no justification to resume the Black Sea Grain Initiative, which had previously facilitated safe passage for Ukrainian grain exports. The combination of reduced supply from Ukraine and policy shifts from major exporters contributed to the recent surge in prices before the subsequent correction.
