CBOT Wheat Falls 2.68% After Russia Opens Door to Ukraine Peace Talks
CommodityGeopolitics
Wheat futures on the CBOT closed down 2.68% on Friday, September 4, after Russian President Vladimir Putin signaled openness to peace talks to end the war with Ukraine, which could increase the chances of grain exports from the Black Sea returning to normal. December wheat futures fell 20.25 cents to close at $7.3400 per bushel, while December corn futures fell 0.74% to close at $5.3675, and November soybean futures fell 0.49% to close at $13.0975. The move came after Yuri Ushakov, an adviser to the Russian presidential administration, revealed that Putin had met with U.S. envoys Steve Witkoff and Jared Kushner in Moscow, with the 3-hour-10-minute talks described as serious and constructive. Analysts at Total Farm Marketing noted that Putin's remarks signaled Russia's openness to negotiations. However, trading sentiment was also pressured by concerns over a Federal Reserve rate hike, after August nonfarm payrolls surged by 162,000 jobs, nearly three times the expected 56,000. Markets now price in a 58.4% probability of a 0.25% rate hike at the September meeting.
