CBOT wheat prices continued to grow last week supported by expected crop reduction in the main producing countries

07.08.2018

WHEAT. During July 26-August 02, CBOT wheat prices continued to grow (+4.47%). The monthly growth reached 19.4%, reports UkrAgroConsult.

The market showed an increase owing to expected reduction of wheat crop in the EU, as well as in the Black Sea region. Moreover, a drought in Australia also reduced wheat crop prospects in the country and its supply in the world market.

The supply of wheat for export, especially high quality wheat, will decrease considerably this season. This will toughen competition among importers and continue to be a bullish driver for prices during the whole season.

Pessimistic estimates of spring wheat yields in the USA also supported the market last week. The market was also supported by the data on active export contracting of the US wheat, which exceeded market expectations.

CORN. Over the period under review (July 26 - August 02), CBOT corn prices strengthened (+1.44%).

Both growth of wheat futures and concerns about corn conditions in the USA supported the market. A precipitation shortage and spread of dry weather was seen in the USA.

As of July 29, some 72% of corn crop in the USA were in good and excellent condition compared to 61% last year. Currently, corn development is ahead of the last year's pace in the USA.

The high contracting of US corn also remained a bullish factor. Over the week (July 19-26), it exceeded traders’ expectations, and the volume of actual shipments was the highest since mid-June. Corn exports were 27% higher than a week before.

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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