US wheat futures extend climb on short-covering and Middle East tensions

Published Apr 23, 2024

Tridge summary

On Monday, Chicago wheat futures experienced a near 1% increase, marking a third day of gains, primarily fueled by short-covering and heightened geopolitical tensions following Israeli missile strikes in Iran. This unrest, coupled with concerns over potential impacts on grain shipments and a significant $95 billion U.S. aid package for Ukraine, Israel, and Taiwan, has influenced the commodities market. Concurrently, corn and soybeans prices also edged higher. Key factors also include China's shift to Brazilian supplies leading to reduced imports of U.S. soybeans and corn, and Russia's new export quota for grains, further affecting the global commodities landscape.
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 gained almost 1% on Monday, with prices rising for a third consecutive session, underpinned by short-covering and geopolitical tensions. Corn and soybeans also edged higher. FUNDAMENTALS * The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.8% at $5.71 a bushel, as of 0027 GMT, adding to Friday’s 2.5% rally. * Corn climbed 0.2% to $4.34-1/4 a bushel while soybeans added 0.1% to $11.67 a bushel. * Reports of Israeli missile strikes in Iran on Friday fuelled fears of an escalating conflict in the Middle East, although Tehran played down the incident. * Traders had feared that expanding violence in the region could impact shipments in the region and from Russia, the world’s biggest wheat exporter and an ally of Iran. * The U.S. House of Representatives on Saturday with broad bipartisan support passed a $95 billion legislative package providing security assistance to Ukraine, Israel and Taiwan, over bitter objections from Republican ...
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