Wheat futures dropped for a fourth straight day in Chicago after Donald Trump said Russia and Ukraine agreed to an immediate "energy ceasefire," raising hopes that Black Sea shipping disruptions could ease. The two nations together supply more than a quarter of global wheat exports. Futures fell as much as 1.3% before paring losses. Joe Davis, director of commodity sales at Futures International LLC, said the market is reacting to the broader de-escalation theme rather than the energy specifics.
Recent strikes on port infrastructure have forced buyers from Asia to Africa to seek costlier alternative routes. Volodymyr Zelenskyy said Ukraine supports the ceasefire but is awaiting details. Traders are watching for confirmation from Moscow and signs that the agreement could protect grain infrastructure and commercial vessels. Bearish USDA forecasts — including an unexpected rise in corn output — are also pressuring grains.
Corn posted its biggest drop in three years on Friday after the USDA raised yield and production forecasts, spilling over into wheat, which fell as much as 3.2%. Harvest pressure over the next month may limit any rally.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing