Chicago Wheat Futures Recovers from 17-month Low On US Crop Woes, Corn Firms

Wheat market

COMMODITIES(B-Trams):Chicago wheat futures advanced for the first time in three sessions as the market rebounded from its lowest point in 17 months, supported by dryness.

Which is reducing the potential for US yields. Prices for soybeans remained largely unchanged due to a drought that reduced production in Argentina.

As of 0330 GMT, the most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.4% to $6.97-3/4 a bushel, its lowest level since September 2021. Corn rose 0.2 percent to $6.38 per bushel, while soybeans remained unchanged at $15.29 per bushel.

In a weekly crop report released on Monday, the National Agricultural Statistics Service of the United States Department of Agriculture (USDA) found that 17% of the winter wheat in Kansas, the top producer, was in good to excellent condition, down from 19% the previous week.

Also Read : US Department Of Agriculture Report For Wheat, Soybean, Corn Grains In Annual Outlook 2023-2024

Expectations that a grain corridor agreement in the Black Sea will be extended limited gains in wheat prices.

Last week, Russian wheat prices fell, and the Turkish foreign minister said that Ankara is working hard to extend the safe shipping agreement that allows Ukraine to export grain. This agreement ends in mid-March and allows Ukraine to export grain.

Also Read : Kazakhstan’s Wheat Production Estimated To Be 16.4 Mln Tonnes This Year

From 36.6 million tonnes previously, the Australian Bureau of Agricultural and Resource Economics now predicts a record-breaking 39.2 million tonnes of wheat harvest in 2022/23.

The government of Australia announced on Tuesday that, as a result of years of high rainfall that increased yields, agricultural exports are anticipated to break records in the current fiscal year.

According to agribusiness consultancy Safras & Mercado on Monday, the sale of Brazilian crop has reached 35.4% of the estimated production in the 2022/2023 cycle, lagging last year’s level and the historical average. This resulted in wheat falling for the second session on optimism over the Black Sea grain deal.

Safras stated, citing data collected up to last Friday, that Brazilian farmers had sold 48.5% of their crop at this time last year, while the five-year average for farmer selling in the period is 51.7%.

The USDA confirmed private sales of 110,000 tons of US corn to Japan and another 182,400 tons to unknown destinations; however, the volumes were lower than some traders had anticipated in light of widespread rumors last week that China was looking for corn.

The agency reported export inspections of nearly 900,000 tonnes of US corn in the most recent week, the highest weekly total since July. However, weekly inspections of US soybeans and wheat fell short of trade expectations.

Also Read : Brazil Expects Record Soybean Crop

Before the USDA’s monthly supply/demand report on Wednesday, traders were preparing for the possibility that the government would lower its forecasts for Argentina’s soybean and corn harvests. According to traders, commodity funds purchased all CBOT soybean and soymeal futures contracts on Monday.

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