Wheat prices rise for fifth consecutive day amid European production issues
Wheat futures on the CBOT rose for the fifth consecutive day, driven by poor European harvests, especially in France. The most-active contract traded at $5.52-3/4 per bushel. Meanwhile, corn and soybean futures saw slight declines amid focus on large global supplies. The European Commission revised down its wheat production and export estimates, while Russian and Australian forecasts remained strong.
CANBERRA: Wheat futures on the Chicago Board of Trade (CBOT) is not stop their upward trend on Tuesday, marking the fifth back-to-back day of gains, driven by disappointing production figures from Europe. The price bounce follows a period of near four-year lows.
In Paris, wheat futures also saw an increase, though gains in the US market were tempered by a holiday. Meanwhile, soybean and corn futures experienced slight declines as market focus shifted to huge supplies despite recent upticks in demand.
The most-active wheat contract on CBOT was trading up 0.2% at $5.52-3/4 per bushel as of 0058 GMT, following a 4.5% rise last week. The corn futures edged down 0.1% to $4.00-1/2 per bushel, while soybeans slipped 0.1% to $9.98-3/4 per bushel.
Recently, increase in wheat prices is largely attributed to issue in European crop production, including the worst French wheat harvest since the 1980s. However, global supply remains ample, and competition from low- priced Black Sea grain has moderated in the market. Last week, the European Commission revised its 2024/25 EU common wheat production estimate downward to 116.1 million metric tons from 120.8 million tons, and reduced the export forecast to 26 million tons from 32 million tons.
Comparably, Russian consultancy Sovecon has lowered its forecast for Russia’s 2024 wheat crop to 82.5 million metric tons from 83.3 million, though that remains robust by historical standards. Otherwise, Canada, the United States, and Australia anticipate strong harvests, with Australia recently raising its production estimate by 2.7 million tons.
In other developments, US corn and soybean export sales for the week ending August 22 exceeded analyst expectations. However, the Buenos Aires Grain Exchange (BdeC) has forecast a 17.1% drop in Argentina’s corn planting area for the 2024/25 season due to concerns over pest outbreaks and potential droughts. Recent rainfall may improve conditions for the crops that are planted.
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