Grain Agreement Extension Shapes Wheat Prices in North America

The extension of the grain agreement, which ensures the flow of Ukrainian and Russian agricultural products to global markets, sent wheat prices down to a two year low. In the mid May period, the price for a bushel slipped to around 6.05 dollars as traders assessed supply disruptions, geopolitical factors, and the evolving logistics landscape on the world stage. Observers tracked the movement through daily trade data on the Chicago Mercantile Exchange, noting how contracts reacted to fresh developments and renewed certainty in the supply chain. The market narrative shifted quickly as buyers recalibrated expectations in response to updated government actions and the evolving tempo of international negotiations. Reuters observed that the extension appeared to unload some of the immediate upward pressure that had built in prior weeks, while also highlighting the fragile balance between export capacity and domestic consumption needs as global buyers reallocate stocks and hedges became more active.