Wheat prices stabilise as import demand emerges

980970825ZoeSchiller_125638758_2Cruisers

Wheat markets traded a mixed but slightly firmer tone this week. As of 26 September, CBOT wheat closed around US 527c/bu, up on the day. Over the past month, the contract has managed a modest 2.5% gain, though prices remain more than 11% below year-ago levels, underscoring how far the market has retreated from last year’s highs.

The headline story came out of Argentina, where the government moved in dramatic fashion on Monday to suspend export taxes on grains, oilseeds, by-products, and even beef and poultry. The stated aim was to unlock fresh export flows, boost dollar inflows, and stabilise shaky financial markets. The suspension was supposed to last until the end of October, or until exporters declared US$7 billion in sales.

In reality, the policy lasted just two days. Exporters rushed to register sales, hitting the US$7 billion ceiling almost immediately. Soybeans and soybean meal were the biggest beneficiaries, with China reportedly booking 20 bulk cargoes. The move is unlikely to sit well with the US, which has yet to ship a single cargo of soybeans to China this season, an unprecedented development given China was once its largest customer. Wheat and maize also saw a flurry of activity, though soy dominated.

Meanwhile, Black Sea risks are back on the radar. Ukraine has stepped up attacks on Russian oil infrastructure, striking at both energy and export capacity. This week, a Ukrainian drone targeted the deep-sea port of Novorossiisk, a dual-use site serving as both a naval depot and a key hub for grain and oil shipments. Adding to the tension, the US President delivered a sharp address at the UN, signalling a tougher rhetorical line towards Moscow. Together, these developments injected fresh risk premium into grain markets.

On the demand side, signs are emerging that importers are beginning to re-engage after months on the sidelines. This week Iran is thought to have booked around 2 mmt of wheat, Algeria purchased roughly 600 kmt, and Jordan issued a tender for 120 kmt.

These deals suggest that the recent easing in wheat values has made the market more attractive to traditional buyers, providing some much-needed demand support.

Next week

Wheat markets are balancing between bearish fundamentals, large global supplies and strong competition from the Black Sea, versus bullish geopolitical risk and returning importer demand. Prices look to be stabilising for now.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: Reuters, USDA, Zaner Ag Hedge, Mecardo, Next Level Grain Marketing

Have any questions or comments?

We love to hear from you!
Two green soybean pods
Grains & Oilseeds

New Year, old themes

2026 has opened with a familiar driver dominating the headlines: geopolitics. Forget Russia, Venezuela or Greenland, developments in Iran arguably carry far greater implications for

Read More »
Grain field on a blue sky day
Grains & Oilseeds

Canola cops international plunge

For southern canola growers, the timing of last week’s decline couldn’t have been much worse. Here we take a look at harvest pricing and whether

Read More »

Want market insights delivered straight to your inbox?

Sign up to the mailing list to get regular updates to new analysis and market outlooks

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
Listen to the podcast

Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.

156A7986_LQ-oxuut6zdthc8o09e5yux8merbgc55xv1zecznd47xo (2)
MEET THE TEAM

Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape. 

SERVICES AND CAPABILITIES STATEMENT BROCHURE

We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.