Ample supply pushes wheat towards lowest levels since 2020

Wheat

Grains, Cereal & Legumes

Russia

Market & Price Trends

Published Mar 28, 2024

Tridge summary

Chicago wheat futures have declined to near 3-1/2-year lows, primarily due to a global surplus overshadowing concerns about potential disruptions in Russian exports. This trend is mirrored in the soybean and corn markets, which are also facing declines as the market anticipates U.S. planting and grain stock data. Despite geopolitical tensions, including attacks in Ukraine, the abundant global supply, highlighted by Russia's expected large wheat harvest for the third consecutive year, is driving prices down. Market sentiments are further influenced by upcoming U.S. reports and adjustments in global crop forecasts, such as a reduced corn production outlook in Brazil and lowered expectations for the South African maize harvest.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Chicago wheat futures fell towards 3-1/2-year lows on Wednesday as traders dismissed concerns that exports from top supplier Russia would be disrupted and focused instead on a plentiful supply outlook. Soybean and corn futures also fell as the markets looked ahead to data on U.S. planting and grain stocks due on Thursday that could move prices. The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.8% at $5.39-1/4 a bushel by 0428 GMT, while CBOT soybeans Sv1 fell 0.6% to $11.92 a bushel and corn Cv1 slipped 0.8% to $4.29 a bushel. All three crops are well supplied and the contracts are near their lowest levels since 2020, with speculators betting heavily on further declines. Huge amounts of cheap wheat are emerging from Russia, which expects a third consecutive large harvest this year and could set a of 5 million tons this month. Ample supply is pulling prices lower and some traders expect the U.S. Department of Agriculture (USDA) to reveal a rise in ...

Source: Hellenic Shipping News