Wheat at three-month low as hopes for Ukraine talks weigh on grain prices
Wheat, corn and sugar have fallen sharply on commodity exchanges. Traders are betting on new talks between Washington, Moscow and Kyiv, but risks remain in the Black Sea.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
Grain prices fell sharply this week. The trigger was the Kremlin's agreement in principle to resume three-way talks with Washington and Kyiv after Nov. 10, according to an analysis by experts at the Sofia Commodity Exchange reported by the BTA news agency. December wheat fell to about $230 per ton in Chicago, a three-month low. On Euronext in Paris, the price dropped 8.75 euros in one day to 232.75 euros per ton.
Prices were also weighed down by a large Russian harvest and a 13% upward revision to Argentina's wheat forecast. Corn traded at about $181 per ton in Chicago after six straight days of losses; in Europe, the November contract stood at about 291 to 295 euros. Brazil shipped 1.65 million tons of corn to Europe in October, up from about 200,000 tons a year earlier. Sugar also eased, with raw sugar in New York falling to a two-week low of about $444 per ton.
Risks remain: according to the analysis, Odesa is blocked, Black Sea terminals have come to a near standstill after drone attacks, and Russia is sowing winter grain at the slowest pace since 2013. On the Sofia Commodity Exchange, the only recent demand was for feed wheat at 192 euros per ton.