FX.co ★ Wheat Returns to 2-Month Low

Wheat futures declined to about $6.65 per bushel, the lowest level since August 18, after early assessments signaled a notably larger Australian harvest. During a two-day crop tour, scouts from the Grain Industry Association of Victoria reported robust yields across major growing areas, with only limited evidence of water damage or disease.

The prospect of increased Australian supply may ease pressure on importers in Southeast Asia and the Middle East, at a time when the intensifying Black Sea conflict is threatening grain exports from two of the world’s largest wheat exporters. Geopolitical risk remains elevated after Ukrainian President Volodymyr Zelenskyy ended a three-day pause in strikes on Russian oil refineries, citing ongoing Russian attacks on Ukraine’s energy infrastructure and uncertainty surrounding US support.

The tour covered key producing regions, including Horsham and Ouyen in Victoria, as well as Wagga Wagga in neighboring New South Wales, with detailed findings expected within the coming week.