Due to expectations that peace can be achieved between Russia and Ukraine, good climatic conditions and decreasing demand, the price per bushel of wheat recorded its fastest monthly decline since June 2024, decreasing by 12.7 percent in September.
Wheat prices are trying to navigate with geopolitical developments affecting climate conditions, supply and demand. The price per bushel of wheat lost 5.85 percent of its value in January. Wheat prices, which followed a fluctuating trend in the following months due to increased geopolitical risks and weather-related concerns, rose to $ 7.95 in September.
Wheat prices fell sharply in September due to expectations that peace could be achieved between Russia and Ukraine, good climatic conditions and decreasing demand. The fastest monthly decline since June 2024 was seen in wheat prices, which lost 12.7 percent in value in the month in question. The price per bushel of wheat lost 15.5 percent in June 2024.
Thus, wheat prices, which started the year at 5 dollars, completed September at 6.75 dollars. During this period, wheat prices gained 35 percent in value.
“US WHEAT WAS EXPENSIVE DUE TO THE STRENGTHENING IN THE DOLLAR INDEX”
Futures and commodity markets expert Zafer Ergezen, in his evaluation to the AA correspondent, said that there was a recovery in wheat prices in the past due to the risks related to wheat exports in the Black Sea. Stating that concerns about the demand side came to the fore later, Ergezen said, “The fact that relations between the USA and Russia are going well and supply expectations in the Black Sea are increasing, however, the El Niño effect is lower than expected, the weakening of US wheat exports in the short term and concerns about a slowdown in global growth are among the main factors that lead to a retreat in wheat pricing.” he said.
Stating that the price of US wheat remained higher than European wheat due to the decrease in the cost of wheat produced by Russia and Ukraine, Ergezen stated that this caused the demand for US wheat to decrease, which in turn brought the prices down.
Ergezen said, “US wheat was expensive due to the strengthening of the dollar index. As a result of this strengthening, the cost of wheat in dollar terms increased. This is one of the factors that made European wheat more attractive.” he said.
