On November 29, US wheat futures traded higher after falling to their three-month low in the previous session.
The Chicago Board of Trade (CBOT) wheat contract is trading higher by 0.42% to $784.38 per metric ton on Tuesday’s trading session.
After dropping previously to its lowest since August at $7.73 per bushel, it recovered within the day to $7.84 a bushel.
Accordingly, soybeans rose 0.30% to $14.61 a bushel.
The driving factor for the rebound was the increasing competition due to cheap supplies from Russia and the Black Sea. The fall of grain supply in the latter region caused a rebound in the country’s wheat prices.
On Friday, Russian wheat prices for December delivery were $317.00 a ton, which was $3.00 above a week earlier.
Meanwhile, Russia’s grain export last week dropped to 780, 000.00 tons from 1.00 tons a week prior.
For the country’s stockpile in the July-June season, Russia’s agriculture ministry has bought 1.94 million tons of grains from the domestic market.
Despite this, the ministry reportedly plans to buy another 3 million tons this season.
Additionally, the consultancy stated that farmers planted winter grains on 77 million hectares, below the 18.4 million hectares a year earlier.
Fortunately, weather conditions in Volga and the central regions of Russia remained winter wheat friendly.
Canadian Wheat Production Rebounds
Canadian Grain Commission (CGC) and Cereals Canada data indicate a rebound in the country’s wheat production.
The data revealed that wheat production in 2022 hit above-average levels after a drought-stricken crop last year.
The report issued on November 23 recorded 34.70 million tons in 2020, which was 55% above 2021.
CEO of Cereals Canada, Dean Dias, commented that the report would provide technical data for the crop expectation this year.
In addition, Dias clarified that a consistent supply would help food security around the globe.
Dias also pointed out the importance of the report, saying that it was necessary to keep the consumers informed.
