Chicago wheat hits lowest on improving supply
Corn and soybean futures saw slight gains, while the most-active wheat contract on the Chicago Board of Trade remained steady at $5.76 per bushel, having earlier hit a low of $5.73. Despite recent downgrades to Russia’s harvest outlook, weather improvements led to forecast upgrades. Meanwhile, enhanced soil moisture in Australia and Canada and a rapidly progressing U.S. harvest have contributed to a balanced outlook. Analysts at Commerzbank noted that wheat stocks in exporting countries might fall in the 2024/25 season.
Corn and soybean futures rose slightly. The most-active wheat contract on the Chicago Board of Trade (CBOT) was flat at $5.76 a bushel by 0450 GMT after falling to $5.73, the lowest since April 22. Downgrades to Russia’s harvest outlook pushed wheat to a 10-month high of $7.20 last month.
But weather conditions in Russia have improved, with consultants IKAR last week raising its forecast and the country’s agriculture minister saying frosts did not have a significant impact on harvest volumes as most affected farmland has been reseeded.
Soil moisture in other major producers such as Australia and Canada has also improved, while the US harvest is advancing quickly and farmers in Ukraine have started bringing in crops. The US dollar rose to its highest since the start of May, making US farm goods more expensive for buyers with other currencies. “The extent of the price decline seems exaggerated,” analysts at Commerzbank said in a note, adding that wheat stocks in exporting countries were likely to fall during the 2024/25 season despite improved crop prospects and rising inventories in the United States.
Source Link : https://www.brecorder.com/news/40309696/chicago-wheat-hits-lowest-on-improving-supply
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