Wheat closes 5th with more than 2% on the Chicago Stock Exchange with a reduction in the area dedicated to winter soft in the USA

Wheat

United States

Market & Price Trends

Published Mar 29, 2024

Tridge summary

The USDA's recent report indicates a 4% decrease in the estimated area for the 2024/25 wheat harvest in the United States, totaling 19.22 million hectares, which is slightly above market expectations but significantly lower than the previous year's figures. This reduction, especially notable in the soft winter wheat area with a nearly 20% decrease, led to a surge in wheat futures on the Chicago Stock Exchange, closing the day up by more than 2.5%. Despite this uptick, analysts remain cautious, suggesting that these price movements may not be sufficient to alter the overall market trends. The decline in the winter wheat area, which represents about 70% of the US wheat crop, is a critical factor driving these developments.

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

The USDA (United States Department of Agriculture) numbers reported this Thursday (28) were well received by the wheat market on the Chicago Stock Exchange and cereal futures ended the day rising between 10 and 14.50 points - more than 2.5% - on the most traded positions. Thus, May ended the day with US$5.61 and December with US$6.13 per bushel. The first piece of data to serve as an important fuel for prices was the smallest area estimated by the North American department for the 2024/25 harvest in the United States. The department also indicated an area of 19.22 million hectares for 2024/25 wheat in the United States, 4% less than in the 2023/24 harvest. The average expected by the market was 19.15 million. In February, at the Outlook Forum, the USDA projected an area of 19.02 million hectares. Despite the intense increases in this last session of the week, the movement does not have enough strength to promote a reversal of trends for this market, according to Safras & Mercado ...

Source: NoticiasAgricolas