Tridge summary
Grain markets are experiencing a surge in prices due to deteriorating crop conditions in major exporting countries, with Chicago Board of Trade (CBoT) wheat futures reaching an eight-month high. The results of the Kansas Wheat Quality Council's hard winter wheat tour indicated that Kansas crops are in good shape, with an average yield of 46.5 bushels per acre, contrary to the US Department of Agriculture's forecast of 268 million bushels. Despite this, international traded wheat price indicators remained stable. In Australia, published bids for grain initially rose then fell, reflecting US futures and a stronger Australian dollar, but 'actual traded' prices were above published bids. Clear Grain Exchange saw 50 buyer businesses and an additional 70 searching for grain, with 55 different grades of wheat and other crops traded in 16 port zones across Australia.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Grain markets have been adding risk premium into prices as crop conditions have deteriorated in large grain exporting countries during the northern hemisphere spring period. Chicago Board of Trade (CBoT) July 2024 wheat futures reached eight-month highs mid last week, before pulling back and ending the week off the highs. The results of the annual Kansas Wheat Quality Council's hard winter wheat tour were released at the end of last week which corresponded with the drop in US wheat futures. The tour estimated an average Kansas wheat yield of 46.5 bushels per acre compared to the tour's five-year average yield of 42.4 bushels per acre, indicating Kansas crops are in reasonable shape. The outcome of the tour projects Kansas wheat production at 290 million bushels, in comparison the United States Department of Agriculture (USDA) is forecasting production at 268 million bushels, a difference of 0.6m tonnes. Hence the outcome wasn't overly "needle shifting", however may have provided ...
Source: Farmweekly
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