US wheat continues its progression towards $7/bu

Published May 22, 2024

Tridge summary

Wheat prices in Chicago surged to nearly $7 per bushel due to concerns over production in the Black Sea region, including frost damage in Ukraine and a lower Russian wheat harvest estimate. The USDA also downgraded its winter wheat ratings. Meanwhile, corn and soybean plantings progressed well, with international corn sales providing some market support. At the Chicago close, SRW wheat for July 2024 rose to $6.97/bu, while July 2024 corn and soybean futures fell to $4.58/bu and $12.36/bu, respectively.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Wheat prices continued their rise this Tuesday evening in Chicago to flirt with $7/bu, in a market increasingly concerned about production potential in the Black Sea. Frost damage is indeed reported in part of Ukraine, while Ikar has further reduced its 2024 Russian wheat harvest estimate by 2.5 Mt, to 83.5 Mt. The USDA also surprised the market by reducing its “good to excellent” winter wheat ratings by one point in its latest weekly Crop Progress, to 49%. Corn (70%) and soybean (52%) plantings, however, progressed more quickly than expected last week and maintained progress close to the five-year average (71 and 49% respectively). The USDA, however, provided some support to the trend by confirming international sales of 223 kt of corn, including 110 kt to Spain ...
Source: TerreNet
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