A soft start to 2024 wheat prices in the US and Europe

Wheat prices extended their soft start to 2024, weighed by crop improvement in the top US growing state with European wheat exports witnessing competitive growth from increased Ukrainian grain exports. The US Department of Agriculture rated at 43% ‘good’ or ‘excellent’ the condition of winter wheat in the state of Kansas, up by nine points since the previous reading in late November. The rating in neighbouring Oklahoma rose too, by 14 points to 67%. While ratings for some smaller growing states, such as Colorado and Nebraska, eased from pre-winter levels, the improvement in Kansas, which is typically responsible for roughly one-quarter of US winter wheat output, provoked crop confidence and encouraged the removal of some risk premium. Chicago soft red winter wheat futures for March-24 stood down by 0.9% in late morning deals, testing support at the US$6.00/Bu mark, with European contracts showing less resilience against Chicago decline. London feed wheat for May-24 shed 0.5%, also ...