The prospect that grains exports from Ukraine might be resumed has exerted noticeable pressure on wheat prices this week. If agreement were to be reached on resuming grains exports from Ukraine, wheat prices could fall further, strategists at Commerzbank report.

A lot of new supply is reaching the market

“According to Turkey, an agreement could be signed next week. It would apparently include joint controls for checking shipments in the ports and Turkey ensuring the safety of Black Sea export routes. Wheat would then become even cheaper.”

“If hopes are quashed yet again, wheat prices are likely to recoup only part of their losses. This is because harvesting is now underway in the major producing countries in the northern hemisphere, meaning that a lot of new supply is reaching the market.”