Wheat Futures has reached its new three-month low in its latest trading session as it was pressured by lower-than-expected exports during the recent periods.
December deliveries of soft-red winter wheat futures declined to $4.09 ½ per bushel which is a 1.5% decline generally at the Chicago Board of Trade (CBOT). This has been reported to be its lowest since August and a low for the futures.
According to the US Department of Agriculture, the exporters of the said futures marketed 200,500 metric tons last Friday which ultimately missed the analyst estimates. Such pressure endured ‘till Monday’s trades.
The Global Wheat’s market shares in the preceding periods has reportedly toughened as higher production in nations, for instance Russia - which is now the biggest exporter globally has been permitted to market grains in a cheaper value to significant users. With such, farmers in the US planted less wheat in the current year.
Other futures market also added to the current pressure that wheat is facing. On Monday, Crude oil experienced a sharp decline as the US Dollar deteriorated abruptly before calming throughout the remaining trading session. According to analyst however, the weak US Dollar could help with the recovery of wheat as it’ll make it an attractive alternative for international purchasers.
Furthermore, the reported weakening on wheat futures affected the corn futures as well. December deliveries for Corn Futures declined by 1% to $3.38 3/4 per bushel in CBOT. Soybean futures added 0.3% to $9.96 a bushel. The most current soybean export sales reported by the USDA likewise declined, not fully meeting the expectation.
"Unless South America runs into weather woes that hurt yields, soybeans sales and shipments during the rest of the marketing year are likely to fall short of USDA projections," Dave Marshall told reports.
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