News

Global: Weather forecasts are rather unfavorable for crops

Published May 23, 2024

Tridge summary

Wheat prices have reached their highest since July 2023, driven by concerns over weather conditions and potential crop yields. Dry weather in Russia, a major wheat exporter, and heavy rain in Western Europe are contributing to the increase. The Russian government has lowered its export forecast, but exports are still expected to be high. In the US, wheat fields in Kansas are expected to yield higher than last year, which has slightly reassured the market. Corn and rapeseed prices have also increased, while soybean prices remain firm due to floods in southern Brazil.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Bread cereal climbed on Wednesday to 263 euros per tonne for the September deadline on Euronext, the highest since July 2023. In Chicago, the bushel for delivery in July was moving above the symbolic threshold of 7 dollars. “We are fully in the “wheather market””: prices are guided by the weather, summarizes Sébastien Poncelet, analyst at Argus Media France (Agritel firm). Prices fell at the end of last week after forecasts anticipated rain in Russia, by far the world's largest exporter of wheat. But the various weather models now “unanimously” anticipate dry weather for the next 15 days, “which makes the situation worse,” adds Sébastien Poncelet. “New information about frosts and freezing temperatures in Russian growing areas” also contributed to the rise in wheat prices, according to Jack Scoville of the Price Futures Group brokerage house. Observers are gradually revising downwards the scale of the next harvests. The Russian firm Ikar has already published a forecast of 83.5 ...
Source: TerreNet
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