On Wednesday, wheat futures lost ground as Canada’s production spiked on improved soil moisture conditions. At the time of writing, the price of the US wheat contract for March delivery plummeted by 0.21% to $760.40 per metric ton.
The grain’s production in Canada increased by 50.00% to 33.80 million tons in the 2022/23 marketing year. It is mainly due to higher yields, planting area, and improved soil moisture conditions. This latest acclimate is in line with the three-year average before the 2021 drought.
Meanwhile, the USDA forecasted the total wheat exports to rise on strong demand from China, Indonesia, South America, Japan, and Italy.
According to statistics, shipments increased by 49.00% in Q3 2022. Massive growth came from Beijing and Rome by 497.00% and 155.00%, respectively. In addition, the USDA projected wheat ending stocks to jump from 28.00 MT to 38.00 MT amid increased domestic supplies.
In Egypt, the General Authority for Supply Commodities announced a tender on Tuesday. It is intended to purchase wheat within the Food Security and Resilience Support Program framework, which the World Bank funded. This tender is for a quantity that ranges from 30,000 to 60,000, depending on what the seller chose from the last crop for cost and freight.
Indian Wheat Prices also Drop
Furthermore, the prices of Indian wheat plunged by 13.00% after the government offered 3.00 MT to bulk customers. The country’s grain cost plummeted to $347.11 per ton after hitting a record high last week amid low stocks. This recent price increase reflects a drop in state purchases.
Each year, the government-supported Food Corporation of India buys millions of tons of wheat from local farmers at a fixed support price.
Last year, its purchases declined by 53.00% as open market costs remained above the rate at which the Indian government buys wheat.
Recently, FCI released 3.00 MT tons of wheat as the government does not want the procurement to drop this year.
