By Jamie Martin
Wheat prices on the Chicago Board of Trade (CBOT) saw a minor decline, falling 0.6% to $5.91-1/2 a bushel early Monday, retreating from Friday’s three-month high of $5.99.
The dip comes amid concerns over supply disruptions following a missile attack in the Black Sea and potential crop reductions in the EU due to unfavorable weather.
The wheat market had previously enjoyed a 13% increase over three weeks, driven by a weaker US dollar which made US agricultural products more appealing to international buyers.
Analysts like Rod Baker from Australian Crop Forecasters attribute the price surge to these geopolitical tensions and agricultural challenges.
potential adjustments in European wheat outputs could impact on global supply, with reductions possibly reaching up to 6 million metric tons. Russia’s crop quality might also face further downgrades, intensifying supply worries.
Despite these concerns, the US Department of Agriculture (USDA) last week raised its global wheat stock estimates, which could stabilize prices. However, the impending large US corn harvest may exert additional downward pressure on wheat prices.
In related markets, CBOT corn and soybeans also experienced declines. Corn dropped 0.7% to $4.10-1/2 a bushel, while soybeans decreased by 0.5% to $10.01-1/4 a bushel, reflecting a mixed outlook in US crop projections and global agricultural dynamics.
Photo Credit: gettyimages-ygrek
Categories: National