USA: Wheat eases after rally as the weather watched

Published May 30, 2024

Tridge summary

Chicago wheat futures experienced a slight decline after reaching a 10-month high, as market participants anticipated potential rainfall in Russia that could potentially reduce the impact of harvest losses due to dryness and spring frosts. This situation, coupled with concerns over a smaller Ukrainian crop and possible increased demand from India, has contributed to market uncertainty. Meanwhile, U.S. wheat harvest prospects and planting progress for corn and soybeans are also under scrutiny. The U.S. Department of Agriculture reported that 48% of the winter wheat crop is in good-to-excellent condition, slightly ahead of the five-year average. However, heavy rain is expected to affect the Plains, which could impact both developing crops and ongoing harvesting. Additionally, the market is monitoring South American production prospects, particularly in Argentina, which is expected to begin corn shipments to China in July.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago wheat futures edged down on Wednesday, consolidating below a 10-month high as investors waited to see if forecast rain could stem a decline in harvest prospects in the biggest exporter Russia. Soybean futures edged down while corn was near flat as U.S. planting progress capped prices. The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.5% at $6.97 a bushel by 1106 GMT, as it hovered around the psychological $7 threshold. The contract had jumped over 3% on Tuesday to $7.20, its highest since July 2023, before paring gains to close slightly higher. Analysts have cut Russian wheat harvest estimates by around 10 million metric tons this month due to persistent dryness plus bitter spring frosts, unsettling a market that has become used to massive Russian crops and exports. Expectations of a smaller crop in Ukraine too have added to concerns about Black Sea supply, at a time when potential imports by India could add to global demand. Weather charts ...
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