Wheat prices see largest decline in over two years

Wheat prices fell by 12.7% in September to $6.75 per bushel, marking the sharpest monthly decline since June 2024. Prices had previously peaked at $7.95 during the month.

Several factors contributed to this downturn, including potential peace agreements between Russia and Ukraine, favorable weather conditions, and declining demand. Market expert Zafer Ergezen noted that while previous price increases were driven by supply risks in the Black Sea, recent market dynamics have shifted due to evolving US-Russia relations.

Additionally, a weaker-than-expected El Niño effect, a short-term slowdown in US wheat exports, and concerns regarding a global economic slowdown have pressured prices. The strength of the US dollar also made American wheat more expensive compared to European alternatives, reducing demand for US-produced grain.