What is pushing wheat up?

14.07.2017

The first week of the new marketing year 2017/18 sprang price surprises on agri market participants. July wheat futures in Chicago closed Thursday at 519 cents/bushel, up 21% month-over-month. Its increase over last year is already almost 9%.

This price rally happened despite the effect of the bearish fundamental factor of high global carryovers, particularly in the USA, Canada, Australia and Russia.

The price upturn was driven primarily by market participants’ increased focus on the structure of global wheat supply. At the same time, they are currently concerned about dim outlook for the future world crop of high-protein grain rather than about a shortage of Chicago-traded soft winter wheat in major growing countries.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult