Overview
- Global wheat futures plunged on Thursday after Vladimir Putin said a peace agreement with Ukraine was possible, with intraday falls of about US$12 on U.S. and European contracts.
- Markets later pared some losses when traders concluded Putin’s comments did not signal an immediate halt to military operations or a concrete reopening of Black Sea shipping routes.
- The Russian government suspended wheat export duties in an attempt to ease domestic pressure and encourage shipments, but officials have not yet shown a clear rise in export flows.
- Ukrainian Grain Association figures show shipments of cereals and oilseeds dropped to 1.2 million tonnes in August from 2.5 million tonnes in July, highlighting persistent logistics bottlenecks.
- Analysts warn that a sustained return of Black Sea exports would probably erode the recent price premium that benefited Argentine wheat and increase competition for global buyers.