Improving U.S. crop ratings added to expectations of ample supply, while Ukraine said alternative export routes would stay constrained until at least the end of August.
Wheat prices dropped below $6.40 per bushel in early August, reaching their lowest level since July 13 as weaker oil prices dragged on the wider agricultural complex. The decline was reinforced by stronger U.S. crop conditions, with USDA (U.S. Department of Agriculture) data showing the 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 roughly half of typical Black Sea shipment volumes. That kept some supply risk in view, but ongoing exports helped calm fears of a major disruption.