FX.co ★ Wheat Hovers at 4-Month Low

Wheat prices held near $6 per bushel—close to their lowest level since early July—as markets weighed expectations of easing tensions in the Black Sea region against limited progress in Russia-Ukraine peace talks. The first direct negotiations in months produced an agreement on a prisoner exchange but failed to deliver a breakthrough on securing maritime trade routes. At the same time, Ukraine claimed responsibility for a drone attack on Russia’s Baltic Sea port of Ust-Luga, a key alternative outlet for Russian exports.

On the demand side, Algeria is believed to have bought around 700,000 metric tons of wheat in a recent import tender, with part of the volume expected to be sourced from Argentina. This underscores rising competition from Southern Hemisphere suppliers. Wheat has been on a steady downward trend from its 3‑1/2‑year high of $7.67 on August 28, as global output is projected to reach its second-highest level on record, underpinned by favorable harvest prospects in both Australia and Argentina.