Prices hit their lowest level since July 13 as Russia moved to bolster Azov-Black Sea shipping security, oil prices fell and improved U.S. crop ratings reinforced expectations of ample supply.
Wheat prices fell to around or below $6.40 per bushel in early August, their lowest level since July 13, as easing concerns over Black Sea export disruption combined with weaker oil prices and improved U.S. crop conditions to pressure the market. Russia said it had formed a task force to improve shipping security in the Azov-Black Sea basin and develop alternative cargo routes after maritime attacks escalated between Russia and Ukraine. USDA data also showed the U.S. spring wheat crop’s good-to-excellent rating rose to 55% from 53% a week earlier, supporting expectations for ample supply. Ukraine’s agriculture minister said alternative export routes would remain constrained until at least the end of August, with capacity at about half of typical Black Sea shipment volumes, keeping some supply risk in view even as continued exports calmed fears of a major disruption.