Wheat futures in the US saw a decline, falling below $5.8 per bushel in September

Published 22-09-2023, 10:37 am
© Reuters.  Wheat futures in the US saw a decline, falling below $5.8 per bushel in September

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.