Wheat Nears 4-Month Highs

Wheat fell to around $6.70 per bushel, extending losses from the more than two-year high of $7.06 reached on July 22, following a sharp drop in crude oil prices after the United States and Iran paused strikes, raising hopes that diplomatic efforts could de-escalate tensions in the Middle East. Despite the pullback, traders remained focused on risks to global wheat supplies as attacks by Russia and Ukraine in the Black Sea and Sea of Azov regions continued to disrupt grain infrastructure and threaten export flows. Ukrainian authorities reported that air attacks caused casualties in Rostov-on-Don, a major Russian export hub near the Sea of Azov, and in Belgorod, highlighting ongoing tensions around key grain routes. Meanwhile, Allseeds said it was halting operations in Ukraine's southern Odesa region. However, discussions over mechanisms to maintain vessel movements through Ukraine's Black Sea ports have raised hopes that exports may avoid major disruptions.

Wheat decreased 5% to 661.47 USd/Bu

Wheat futures climbed more than 1% to above $7 per bushel in late July, reaching their highest level since July 2023, as worsening geopolitical tensions and adverse weather conditions fueled supply concerns. President Trump warned that the US would hold Iran accountable for any further Houthi attacks after Yemen's Houthis said they had targeted two Saudi oil tankers for allegedly breaching their maritime blockade. The attacks, the first since the Iran-backed group announced a naval blockade against Saudi Arabia, heightened fears of broader disruptions to global energy and shipping routes. Adding support to wheat prices, intense heat weakened crop prospects in France and Germany. Moreover, EU grain output is forecast to decline by more than 9% this year, marking the sharpest annual contraction in more than two decades. Elsewhere, extreme temperatures across North Dakota, a key US spring wheat-producing state, have increased stress on crops and raised concerns over yield losses.