Wheat extends drop as traders monitor prospects for Black Sea exports
DBA•Chicago wheat futures fell 0.35% to $7.06 a bushel for a third straight session, while corn gained 0.1% and soybeans rose 0.6%. Traders watched diplomatic efforts to ease Black Sea export disruptions, while a stronger dollar also pressured wheat.
1. Black Sea export outlook
Renewed diplomatic efforts to end the Ukraine war kept attention on Black Sea agricultural exports. Ukraine and Russia have voiced interest in a limited ceasefire involving grain and energy-related targets, US Secretary of State Marco Rubio said after meeting Russian Foreign Minister Sergei Lavrov. Traders hoped a truce could help restore cargo movements that are near a standstill amid attacks on ships and port infrastructure.
2. Alternative routes and dollar
Only eight countries bought Russian wheat in September, down from 26 a year earlier, Russian Grain Union data showed. Ukraine is exploring Baltic Sea ports for grain exports, while Russian companies are repurposing Baltic and Arctic terminals to handle grain. Wheat was also pressured as the dollar reached a fresh two-month high after strong economic data and a hawkish shift in Federal Reserve rhetoric.
