CANBERRA: Chicago wheat futures steadied on Monday after falling to their lowest since April as the dollar strengthened and the supply outlook improved, with harvests ramping up in the United States and elsewhere, bringing new grain into the market.
Corn and soybean futures rose slightly. The most-active wheat contract on the Chicago Board of Trade (CBOT) was flat at $5.76 a bushel by 0450 GMT after falling to $5.73, the lowest since April 22. Downgrades to Russia’s harvest outlook pushed wheat to a 10-month high of $7.20 last month.
But weather conditions in Russia have improved, with consultants IKAR last week raising its forecast and the country’s agriculture minister saying frosts did not have a significant impact on harvest volumes as most affected farmland has been reseeded.
Soil moisture in other major producers such as Australia and Canada has also improved, while the US harvest is advancing quickly and farmers in Ukraine have started bringing in crops. The US dollar rose to its highest since the start of May, making US farm goods more expensive for buyers with other currencies. “The extent of the price decline seems exaggerated,” analysts at Commerzbank said in a note, adding that wheat stocks in exporting countries were likely to fall during the 2024/25 season despite improved crop prospects and rising inventories in the United States.
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