Wheat Futures Price Decline: Wheat futures in the US saw a decline, falling below $5.8 per bushel in September. This marked the lowest price level in nearly three years.
Increased Supply: The decline in wheat prices was attributed to increasing supply from the world's top wheat producers. In particular, favorable weather conditions in Russia boosted yields late in its wheat harvest at the end of August. As a result, the latest WASDE (World Agricultural Supply and Demand Estimates) report expected Russia to produce 85 million tonnes of wheat in the marketing year. This led to higher export expectations, making Russia the world's largest wheat exporter with a projected record-high of 49 million tonnes.
Stimulated Exports: The anticipation of a large wheat supply in Russia already stimulated exports, with SovEcon reporting a 17% increase in exports in September.
Lower Global Consumption Forecasts: The WASDE report also showed a revision of global wheat consumption forecasts lower by 210,000 tonnes to 795.9 million tonnes. This downward revision was attributed to lower demand in various regions, including Southeast Asia, Northern Africa, and Canada.
Ukraine's Export Prospects: News of ships successfully arriving in Ukraine through a temporary corridor raised hopes that Ukraine, another significant wheat producer, might be able to sell some of its grains in the foreign market.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.