As the dry weather continues to persist, wheat gained footing for the second consecutive session.
Chicago wheat futures gained a robust 1% in the latest trading session, propelled by market worries about 2021 supplies’ uncertainty. The dry spell continues to wreak havoc in crucial US and the Black Sea producers.
The hard red winter wheat for December deliveries closed higher with a ¾-cent gain. It currently trades at $5.31 ¼ per bushel.
Similarly, the MGEX December spring wheat rose 1 ½ cent, settling at $5.44 ¼ per barrel.
On the other hand, the most active participant in the Chicago Board of Trade, the soft red winter wheat futures contract, slashed a subtle ¼-cent, steadied lower at $5.94 per bushel.
Until October 8, US export inspections announced that 514,086 tonnes of the cereal grains were sent overseas.
The figure is 24% lower than the previous week’s records, but 3.3% higher than deliveries in the same period last year.
In an update on one of the key agricultural areas, the agriculture department reported that Kansas farmers have so far planted roughly 74% of the 2021 hard red winter wheat crop.
According to weekly progress reports, the figure is ahead of its 56% average for the same phase of the year, compared to previous planting sessions.
Outside the United States, Ukraine suffers anew from the threat of adverse environmental conditions.
The Ukraine-based agriculture consultancy, APK-Inform, cut forecasts on the 2020/2021 gran harvest due to the persistent poor weather.
The group dropped wheat harvest expectations of the critical commodity producer to 25.1 million tonnes and exports to 17.5 million tonnes.
Soya Bean Rebounds from Sluggish Session
Consequently, France also lowered its estimate for soft wheat. The country’s farm ministry changed the previous forecast of 29.5 million tonnes, now at only 29.2 million tonnes.
The cuts in sown areas and yield forecasts confirm the market’s sentiment that the European Union’s top grain grower may suffer from its smallest crop harvests in a long time.
Meanwhile, soya bean reemerges from a painful 3% drop hit in the previous session, along with the lowered global supplies of the commodity for the coming year.
Soya bean is up by 0.9% to $5.99 ¾ per bushel, settling on its second straight gain for the trading day. Similarly, corn added 0.5% to $3.91 per bushel.
Agriculture commodity experts note that soybean and corn supplies will be smaller-than-forecast due to the adverse weather that plagued farmlands in the United States.