Wheat futures slid to an 11-week low in Chicago on Wednesday, extending losses for a fifth straight session as traders reduced risk premiums following increased U.S. pressure on Ukraine to negotiate a peace deal with Russia. The decline marked the longest losing streak since late September, with futures dropping as much as 1.1% amid fresh talks between Ukrainian President Volodymyr Zelenskyy and U.S. envoys. Despite a conciliatory tone from Kyiv, President Donald Trump criticized the outcome, stating the U.S. had received "nothing back" for its support and that it was "time to make a deal." Russian President Vladimir Putin also held discussions with U.S. envoy Steve Witkoff in St. Petersburg, signaling potential progress toward a ceasefire that could unlock significant wheat exports from both Russia and Ukraine.
However, Lachstock Consulting warned against complacency, noting ongoing risks including strikes on Black Sea vessels and Ukrainian drone attacks on Russian energy infrastructure. Weak U.S. export demand and southern hemisphere harvesting added further downward pressure on prices. Hedge funds have steadily reduced bullish bets since early September, with bearish positions reaching a three-month high last week.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing