Wheat Prolongates Rebound
Early in February, Chicago wheat futures rose to the $7.7 per bushel level, the highest level in a month, continuing the market’s recovery from the 15-month low of $7.2 on January 24 as production setbacks by significant exporters dampened prospects of rising supply.
Despite recent rain on Argentinian farms, experts determined that the amount was insufficient to allay earlier drought worries. Meanwhile, Kudyn, the Ukrainian economy minister, lowered expectations for the grain harvest as a result of outages and the outright damage to infrastructure in Ukraine due to Russian attacks.
Nevertheless, industry research group Sovecon revised up shipment predictions for Russia, the top exporter in the world, by 200 thousand tons to 44.1 million for the current marketing year.
Australia, another important exporter, predicted that its production will reach an unprecedented 42 million tonnes in the same time frame.
On Tuesday, the Chicago Board of Trade’s (CBOT) wheat futures declined due to an intraday trend reversal. The traders also said that technical selling was taking place and that the weather forecast indicated that the southern Great Plains of the US will have rains that would be advantageous for crop development. Additionally, weak export demand for US wheat and the dollar’s recovery pressured the market. The U.S. trade expectations are listed below for Thursday’s start of trading in the grain and soy complex.
Up 3–4 cents on corn and wheat
During the overnight trading session, the most active CBOT soft red winter wheat contract rose to its highest level since January 4, helped by a decline in the value of the US dollar.
Wheat export sales reached 168,900 tons in the week ending January 26, according to information released by the U.S. Agriculture Department on Thursday morning. That was less than the 300,000–875,000 tons that analysts had predicted.
CBOT benchmark Overnight trade saw a rise in the March soft red winter wheat futures contract over its 50-day moving average. Last traded at $7.64 per bushel, K.C., CBOT March soft red winter wheat (WH3) was up 4-1/4 cents. MGEX March spring wheat was up 3-1/2 cents at $9.29-1/2 per bushel. March hard red winter wheat was last 3-1/2 cents higher at $8.87-3/4.
On indications of rising export demand, corn futures are strengthening. Of more than market expectations of 600,000 to 1.35 million tons, the USDA said that maize export sales were 1.756 million tons. Just off its session high of $6.85-1/4, CBOT March corn (CH3) ended overnight trading 4 cents higher at $6.85 a bushel.
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