On Thursday, wheat prices were weighed by pressure from sufficient global supplies and export competition on rebounding forecasts from recent lows in Russia.
US wheat futures prices for September delivery decreased by -0.02% to $547.40 per metric ton (MT) on July 25’s Asian afternoon session.
The spring crop condition ratings from the US Department of Agriculture (USDA) were higher than expected. It reported that Kansas City wheat for September shipments fell to $5.66 per bushel. Meanwhile, Minneapolis contracts dipped to $6.15 a bushel.
Moreover, the updated export sales data will be released on Thursday. The trade anticipates selling the commodity from 300,000 MT to 625,000 MT for deliveries.
The Wheat Quality Council Spring wheat and durum crop tour is approaching in North Dakota and certain countries in South Dakota. Its first-day tour average yield was 52.30 bushels per acre (BPA), higher than the 48.30 BPA from last year.
Meanwhile, Canada confirmed the World Agricultural Supply and Demand Estimates (WASDE) outlook for wheat production. It released 35.43 million metric tons (MMT) this week. In its July 12 report, the USDA reached 35 MMT.
Also, the Grains Industry Association of Western Australia accelerated its expected crop production from 16.30 MMT to 18 MMT, with 10.50 MMT accounted for wheat.
Black Sea Inventories Eased Wheat Prices
On Wednesday, prices of front-month wheat futures from Euronext eased due to the Black Sea export supply competition. Moreover, traders seek more information regarding the losses from a poor harvest in Western Europe.
Based on traders, low prices offered by Black Sea exporters and insufficient demand in the purchase tenders offset crop-damaging weather concerns in Germany and France.
According to analysts, France’s initial wheat harvest forecast was 15.00% lower than last year, equating to 29.70 million tons. In Germany, continuous rain slowed harvest progress, raising worries about quality loss.
