On Wednesday, wheat prices fell amid poor demand for US shipments. However, the crop was pushed by cheaper overseas competition.
The wheat futures for March delivery dropped by 0.48% to $727.50 per metric ton. Likewise, it tumbled by 0.50% to $7.27-¼ per bushel.
Besides, the inspected export is 85,672.00 tons of grains in the week ended December 29. The recent data broke the all-time low of 127,306.00 tons in December 2008.
Also, the meager performance rallied in 2023 as preliminary wheat assessments totaled 201,673.00 tons in the week ended January 05.
Moreover, the US was gripped by a freezing Arctic blast last month, impacting transportation and commerce. Further, the commodity showed record lows in the prior months amid weak demand.
Furthermore, analysts project wheat deliveries at 21.10 million tons. As a result, it is predicted that the US export to hit a record low 10.00% share of global shipments.
In addition, the grain supplies covered 54.00% of the United States Department of Agriculture forecast in December. This is a nine-year and slightly above the average data.
Besides, recent deliveries suffered poor export sales due to cheaper wheat in rivals like Russia, Canada, and Australia. Further, economists stated that exports are equal to what demand levels would suggest.
India’s Increased Production as Wheat Price Fell
On Tuesday, experts expected an increase in India’s wheat production, following all-time high prices urging farmers to widen planting areas.
Besides, higher output could encourage the country to remove the ban on staple exports and ease persistent high inflation in food prices.
Also, the Indian government estimates a drop in wheat yield to 106.84 million tons in 2022 from 109.59 million tons data.
Furthermore, the weather in a crucial producing state in the country has been favorable, with temperatures below normal levels. Also, analysts stated that the current cold is good for crop growth.
Moreover, farmers have planted wheat on 33.22 million hectares since October. Further, the sowing season rose nearly to 1.00% from the same period as last year.
Additionally, agriculturists hoped for a lower temperature to remain until harvest season in March.
