Wheat contract in the Chicago Board of Trade slipped by 0.3%, translating to $5.91per bushel. This comes after it surpassed a 2015 high of $6.01 ¾ per bushel in the previous trading session.
The drop is immediately capped by the growing concerns over dry weather on key exporting countries situated in the Black Sea region and in the United States.
According to a commodity expert, the forecasted weather for 2021 continues to bolster the market in the foregoing regions.
Forecasters asserted that wheat farmers would expect little rain, especially in the naturally dry parts of both geographical locations.
Nevertheless, Ukraine seems to be following a better path than their counterparts. The country witnessed improved weather conditions in the winter grain sowing after series of rains.
This reduces the fear of both consumers and farmers after experiencing a severe drought in September. The Eastern Europe state recorded a troubling cropping season last month after undergoing a lower-than-normal soil moisture recharge.
Along with the adverse weather conditions in critical exporters of agricultural commodities, soybeans fell by 0.3% to $10.41 ¼ per bushel.
It previously firmed at a 2.2% hike in the prior trading session after trading at $10.53 ¾ per bushel, which is the commodity’s highest since May of 2018.
Changing the course of lukewarm forecasts, corn edged up by 0.1% to $3.85 ¼ per bushel. Rising to its eight-month high on Tuesday.
According to commodity news, maize harvest has already reached 25% of the total and looks good by far.
Similarly, the US harvest reached the 38% mark from the base. This is significantly higher than its five-year average of 28% and surpassed the analyst poll on Reuters betting for 36%.
Robust Demand for US Agricultural Commodities
According to reports on commodity news, South America’s persistent dry conditions could propel the already robust demand for US agricultural supplies.
The continent is currently struggling to keep its head above the water as parched. Dry soils continue to halt farming sessions.
Analysts predict that the lack of rain could further extend in the coming days, putting Brazil’s planting to later.
Adding an insult to the injury, Pakistan’s Economic Coordination Commodity announced that essential commodities’ prices would likely to go up in the open market.
At present, the country resorted to selling goods at subsidized rates to cushion consumers’ financial burden.
In market estimates, if approved price revert continue, per kilogram of wheat flour will surge by Rs60 in local currency.
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