Wheat hit lowest price since September 2021 as good winter harvest weather and large plantings in the US help calm worries about global grain shortages.
Some areas of Kansas, a top producer, benefited from snow over the weekend and more precipitation is forecast for the Southern Plains this week. The moisture surge comes as money managers have increased their bearish bets on Chicago wheat to the highest level in almost four years as supply worries ease on weather setbacks and exports from the war-torn Black Sea.
Algorithmic traders on Monday “piled up as selling picked up momentum,” said Arlan Suderman, chief commodities economist at StoneX. Both Chicago futures, the global benchmark, and spring wheat from Minneapolis broke recent lows.
America’s wheat farmers are anxiously watching the weather after severe droughts in some areas depressed yields last year, which in turn pushed futures higher and contributed to the worst food inflation in decades. The stakes are high now as price surges have led to larger wheat plantings this season.
Bumper harvests later this year could help contain food inflation further. In the short term, temperatures cold enough to damage or even kill wheat will head toward the U.S. grain belt next week, although recent snowfalls protect most crops, the Commodity Weather Group said Monday.
The March Chicago wheat contract fell a whopping 3.9% to $7.125 a bushel, its lowest since September 2021. The most active Hard Red winter wheat futures fell 4.4% to $8.11 a bushel, the largest percentage decline since early November. Spring wheat was down as much as 3% in Minneapolis.
Another pressure on prices is weak demand for US wheat amid stiff global grain competition, including from Russia.
Good harvest weather also sent soybeans and corn lower, with Chicago futures falling for a fourth straight day as rain eased parched crops in parts of Argentina and supported global supplies.
Soybeans posted the longest stretch of daily losses since September.
Argentina’s soybean fields are expected to get some relief from the drought with the weekend’s rains, and more rainfall is forecast for the next 10 days, the Commodity Weather Group said in a report.
https://www.independent.ie/business/farming/tillage/grain-prices/wheat-dips-to-lowest-since-2021-on-good-weather-and-big-acreage-42310775.html With good weather and large acreage, wheat falls to its lowest level since 2021