CBOT wheat futures strengthened last week, while corn quotations continued shrinking

03.07.2018

WHEAT. Wheat quotations in Chicago slightly strengthened on June 22-29 (+0.4%), reports UkrAgroConsult.

Throughout the reporting week, the wheat market was dominated mostly by bearish sentiment. As before, it was pressured by a rapid pace of wheat harvest in the US along with slow contracting of American wheat at the start of the new season.

According to USDA’s weekly report, harvesting of winter wheat is now 41% complete against a multi-year average of 33%. Condition of 77% of spring wheat is rated good and excellent – this is a much larger share than at the same time in 2017 (40%).

However, late in the week, the market was underpinned by the release of a report on quarterly grain inventories in the USA as well as the cut in EU wheat harvest estimates made by European analysts.

CORN. CBOT corn quotations continued sinking on June 22-29 (-2%). As before, the main bearish factor is tension in trade relations between the US and China, as well as between NAFTA and EU countries.

The price downturn was curbed by reported worsening of American corn crop condition over the week along with forecast dry, hot weather in the US Corn Belt in the first half of July.

Corn harvesting in Argentina is already 56% complete (+4% over the week). In view of dry weather, Brazilian analysts with Agroconsult reduced their forecast for the second corn crop in Brazil to 55.2 MMT from June’s estimate of 57 MMT.

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".

 

UkrAgroConsult

 

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