Thursday, February 2, 2023

US wheat prices fall to three-month low due to competition for exports

by Rod Nickel

WinnipegCANADA, Dec 2 – Chicago wheat deepened losses on Friday and hit a three-month low as modest weekly exports from the United States kept traders focused on competition from cheaper supplies from the Black Sea. ,

* Corn also fell, while soybeans edged up, consolidating on dismal levels in US biofuel stocks following the previous session’s decline.

* The most active wheat contract on the Chicago Stock Exchange was down 1.9% at $7.685 a bushel at $1,558. gmtWhich had earlier come down to the lowest level since 19 August.

* A record Russian harvest and a Ukrainian grain export channel have increased competition for exports of US supplies.

* “We are concerned about Ukraine and Russia. They continue to flood the world market with wheat and their prices are much lower than ours,” said Jack Scoville, vice president of Price Futures Group.

* United States Department of Agriculture (USDA) said on Thursday that US wheat export sales rose to 162,500 tonnes for the week ended Nov. 24, well short of analyst forecasts of 300,000 to 725,000 tonnes.

* Wheat prices fell despite a lower-than-expected Canadian wheat harvest due to drought conditions, Statistics Canada reported.

* French crops, though estimated at 98% soft wheat in good to excellent condition in the week to November 28, are in good to winter condition, according to estimates.

Corn was down 1.6% at 6.5025 bushels, according to Scoville, also facing concerns about weakening export demand.

* Chicago soybeans were up 0.3% at $14.3425 a bushel, after finding technical support just above Thursday’s low of $14.2525.

* Soybean and commodity markets in general have been supported in recent sessions by signs that China is easing measures against covid-19 followed by unusual public protests in the world’s second-largest economy.

Nation World News Desk
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