CBOT wheat prices gained 3% due to expected crop reduction in the EU and Black Sea region

10.07.2018

WHEAT. During June 29-July 05, CBOT wheat prices gained 3%, reports UkrAgroConsult.

The forecasted reduction of wheat production in the EU and the Black Sea region due to dry weather was the main bullish driver.

Drought persisted in Germany and the Baltic countries, while showers and hailstones were seen in France, which caused fears for the wheat crop. Analysts of Strategie Grains lowered their wheat production estimates in France to 33 MMT that supported the market.

An additional support for the market was provided by the fluctuation of EUR/USD exchange rate on the news about the imminent introduction of import duties on Chinese goods, as well as by rainy weather in some northern US states, which could delay harvesting.

By July 01, winter wheat had been gathered from 51% of the intended area (+10% over the week), which surpassed the five-year average (49%). Spring wheat conditions remained at the previous week’s level - 77%.

CORN. During June 29-July 05, CBOT corn prices lost another 2%. A tension in trade relations between the USA and China was the main bearish factor. Market participants closed positions before the formal entry into force of the US import duties on Chinese goods and China's response measures, the effect of which will be felt not only in soybean, but also in corn market.

Corn prices kept falling despite deterioration of the US corn conditions due to high air temperature and downpours in the Midwest.

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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