News

US wheat rises but strong supply and rising dollar limit gains

Wheat
Published Apr 17, 2024

Tridge summary

Chicago wheat futures experienced a minor increase on Tuesday but stayed close to their lowest levels since 2020, due to expectations of a strong supply and the negative impact of a rising dollar on U.S. farm export prices. Despite this slight uptick, the overall market for wheat, soybeans, and corn continues to be pressured by large global supplies and significant exports from countries like Russia. The U.S. Department of Agriculture's reports of unexpectedly high U.S. wheat, soybean, and corn stocks, along with a potential reduction in corn planting, add to the supply concerns. Furthermore, geopolitical tensions and logistical issues are disrupting grain exports from Ukraine, while Brazil's soybean harvest is moving forward, contributing to the complex dynamics affecting the agricultural commodity markets.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago wheat futures rose on Tuesday but remained close to their lowest level since 2020 amid expectations of strong supply and as a rising dollar made U.S. farm exports costlier for importers. Soybean and corn futures inched higher. The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $5.58-1/2 a bushel by 0335 GMT, but prices are still down 11% this year and fell to $5.24 last month, the lowest since August 2020. “Large supplies of wheat and other grains such as corn are weighing on pricing,” said Andrew Whitelaw at Australian agricultural consultancy Episode 3. “Heavy exports (of wheat) from Russia are a cause for concern,” he said. “With a lack of new bullish information, we expect pricing to remain relatively flat with bearish overtones.” The U.S. Department of Agriculture (USDA) in its first weekly crop progress report of the 2024 growing season rated 56% of the U.S. winter wheat crop in good-to-excellent condition, below an average of ...
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