CHICAGO: Internationally Wheat futures fell to $8.9 in October, easing from the three-month low of $9.2 hit at the end of September and tracking the slight retreat for agricultural commodities as a stronger dollar and recession concerns dented purchasing from major importers.
Still, wheat prices are likely to resume the upward momentum and remain above the levels prior to Russia’s invasion of Ukraine.
Further escalation of the war after Russia annexed Ukrainian territory and threatened to use nuclear force raised concerns that Moscow could suspend the safe trade corridor from Ukrainian Black Sea ports that was agreed to in an UN-brokered deal.
Also, dry and hot weather in the US brought the 2022 Internationally wheat harvest to the second smallest level in 20 years. The USDA pegged the US wheat crop at 1.650 billion bushels in its annual Small Grains Summary report, below market forecasts for 1.778 billion bushels and August’s estimates of 1.783 billion bushels.