On Monday, wheat prices fell further to their lowest levels in three and a half months, weighed by freshly harvested crops in the US and Russia.
US wheat futures for September delivery declined by 1.48% to $543.10 per metric ton in the Asian afternoon session.
According to traders, favorable Russian weather supported the harvest’s progress in the country and the US. They added that prices dropped significantly amid ample supply.
The crop has been pressured by warm and dry weather, which helped production in key Northern Hemisphere suppliers.
Meanwhile, the US Department of Agriculture (USDA) raised its outlook for corn plantations on Friday and cut its soybean forecast. It adjusted expectations to align with the number of acres planted for each.
Also, grain exports in Ukraine for the 2024/25 marketing season increased to 1.50 million metric tons, according to the agriculture ministry’s data released on Friday. This marked a jump from the 894,000 tons a year earlier.
On the other hand, the Commodity Futures Trading Commission’s reports showed that non-commercial traders snipped their net short position in CBOT wheat. Additionally, they boosted their net short position in soybeans.
USDA Report Showed Wheat Price Setback
On Friday, grain markets struggled after the USDA’s recent World Agricultural Supply and Demand Estimates (WASDE) report. It showed mixed, yet leaning towards bearish data, for commodities like corn, soybeans, and wheat.
After the department increased its production forecast for the crop by over 130 million bushels, it triggered another technical selling round.
For instance, September Chicago SRW contracts declined by $0.20 to $5.51, and Kansas City HRW futures dropped by $0.15 to $5.69 a bushel.
Moreover, the USDA raised estimates for all-wheat harvest to 134 million bushels, followed by a new outlook of 2.008 billion bushels. A spike in winter wheat and durum production drove it.
