Accra:Wheat prices experienced a significant decline in September, dropping by 12.7% to $6.75 per bushel. This marks the sharpest monthly drop since June 2024, following an intramonth peak of $7.95. The decrease is attributed to a potential peace deal between Russia and Ukraine, favorable weather conditions, and a waning demand.

According to Anadolu Agency, the price movements were influenced by climate and geopolitical developments. Despite the recent drop, wheat prices remain about 35% higher than at the start of the year when they concluded January at $5 a bushel.

Zafer Ergezen, an expert in futures and commodity markets, noted that earlier price rallies were driven by supply risks affecting Black Sea grain exports. However, these dynamics have shifted as US-Russia relations improved, contributing to the price decline.

Ergezen also pointed out that the El Nino effect was weaker than expected, coupled with a short-term weakening of US wheat exports and concerns over a global economic slowdown, which are key factors in the price reduction. Additionally, the strong US dollar has made American wheat more expensive compared to European wheat, reducing demand for US-produced wheat.