Wheat has been on the greener side of the pasture in terms of their price performance in the market as it managed to tally its third gain from its past four sessions. This is great news for the commodity despite having a dry spell and announcements from Australia and even Singapore.
On the other hand, the corn’s price is also lining up towards the wheat’s with gains also tallied today despite the dry spell that plagues several countries. Another grain in the form of soybean has been riding the same trend with the higher closing price today.
One of the greatest increases in today’s market was with Chicago’s future today, rising for the third time from the past four sessions despite having a debacle on the global grain supply, the wheat’s price was up by a massive 04% to 4.37-1/4 a bushel.
The corn and soybean were also running bullish today with both commodities increasing by 0.2% to $3.51-3/4 a bushel and 0.1% to $9.76-1/2 a bushel. The corn has been greatly trampling its previous price, its price also hits the $3.55-1/4 a bushel the highest it managed to garner since October 2.
On a note from National Australia Bank’s agribusiness economist Phin Ziebell, "We are seeing some modest gains in corn and wheat but fundamentals haven't really changed, there are ample supplies and we don't see a big rally from here. And, at the same time markets are close to the bottom, so it will be pretty much range-bound,"
Wheat’s Impending Dilemma
The fact that wheat has been bullishly running has been wonderful news; recently, the Australian wheat farmers have been experiencing a massive dry spell from the massively shifted weather causing a bit of clamor on local productions.
The downside of the dry spell has pushed the fourth-biggest wheat exporter to drop tons of wheat and settling for the smallest crop they have from over a decade. The local wheat price has dipped to a sheepish price of $245 a ton; this has been a troubling fact since the farmers have been getting a $280 price on the same time last year.
Forecasts from analysts and experts are suggesting that the overall wheat output in Australia is forecasted to dip to the 20.15 million tons in late 2017 or early 2018; if that happens, then the output will shed a massive 7% from the previous records.
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