SINGAPORE – The wheat market has been under additional pressure due to improved weather conditions in the United States and expectations of increased Russian production.
“The geopolitical situation has affected wheat prices over the past month or so, and weather conditions in the United States have also driven up prices,” said Dennis Voznesenski, an analyst at Commonwealth Bank.
He added, “Today’s price drop seems quite unexpected and a result of the ceasefire announcement.”
Oil prices fell below $100 a barrel after the US president said he had agreed to a two-week ceasefire with Iran, on the condition that the Strait of Hormuz be reopened immediately and safely.
Wheat futures, the most actively traded commodity on the Chicago Board of Trade, fell 2.8 percent to $5.81 a bushel, hitting a two-week low. Corn also declined 1.1 percent and soybeans dropped 0.2 percent.