Wheat futures slipped to around $6.70 per bushel in mid-July, retreating from a more than two-year high reached on July 15 as traders locked in profits.
Despite the pullback, prices remained elevated as the Russia-Ukraine conflict showed no signs of easing, with Russian forces resuming strikes on Ukrainian port infrastructure along the Black Sea coast in response to recent Ukrainian attacks on Russian vessels in the Sea of Azov and the Black Sea.
Adding pressure on prices, the USDA reported US wheat net export sales of 235,100 metric tons for the week ended July 9, below market expectations.
Meanwhile, supply concerns emerged after the Grain Industry Association of Western Australia projected the state’s 2026 wheat harvest at 9.5 million tons, down nearly 30% from 13.3 million tons in 2025 due to hotter and drier conditions.
Australia, one of the world’s largest wheat exporters, supplies key markets across Southeast Asia, the Middle East, and China.