On Tuesday, wheat futures price increased amid a decline in Ukraine’s area for sowing amid the
Russian war. Meanwhile, Iraq plans to increase the crop’s imports.
The price of US wheat futures for December distribution grew by 1.30% to $818.50 per metric
ton over the past 24 hours on September 06. Furthermore, it rose further by 0.86% in the Asian
afternoon session.
Consequently, the most-active contract on the Chicago Board of Trade (CBOT) jumped by
1.50% to $8.22-¾ a bushel.
Last week, the Ukrainian Agricultural Council said that the nation is facing a decline in wheat
sowing for next year’s crop, warning that the area may tumble by 30.00% to 40.00%.
Meanwhile, Iraq’s Trade Ministry stated it aims to import more wheat for local flour production
to reduce its dependence on more expensive imported flour.
Besides, the country’s grain buying agency plans to adopt new mechanisms regarding its buying
strategy.
The major grain importer started to take urgent actions to secure strategic food supplies due to a
price surge buoyed by the never-ending Russia-Ukraine war.
In July, Iraq said that it seeks to purchase 1.50 million tons of wheat to cover the state’s
consumption in the first months of 2023 since it needs 4.50 million to 5.00 million tons of wheat
every year.
However, the government did not provide further details on how much more grains it would like
to import for its planned rise in local flour output.
Corn also extend gains
Likewise, the price of corn futures rose for a second straight session, just like wheat.
The most-active CBOT maize contracts rose by 0.09% to $6.71-½ per bushel and $666.62 per
metric ton.
Last week, an analyst lowered its US corn yield estimated to 173.20 bushels per acre from
176.00 on its prior monthly report.
According to the calculation, maize farmers are about to reap the largest crop in seven years,
below 30.00 million tons. It represents a 13.00% growth from the year-ago period.
Based on a regulatory data released on Friday, several experts raised their net long position in
CBOT corn futures in the week ended August 30.
