FX.co ★ Wheat Falls to 2-Week Low

Wheat futures fell to $7.10 a bushel, their lowest level in two weeks, as traders weighed fresh diplomatic efforts to end Russia’s war in Ukraine against ongoing disruptions to Black Sea exports. The pullback was also driven by profit-taking after a strong rally. Prices had climbed to $7.70 on August 28— their highest level in three and a half years—before retreating.

The market had been supported earlier when Ukraine struck targets at the Russian port of Novorossiysk, including a naval base and an oil-loading terminal, reigniting worries about interruptions to Black Sea trade. President Volodymyr Zelenskiy said the attack hit multiple facilities, and traders pointed to unconfirmed reports that grain infrastructure may also have been damaged.

However, focus shifted back toward diplomacy after the Kremlin expressed hope that US-mediated talks would resume soon and named Abu Dhabi as its preferred venue for negotiations. The prospect of renewed talks helped ease some of the market’s supply concerns.