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U.S. wheat futures rose for a second straight session on Wednesday, jumping about 1.5% in Chicago after rising 2% in the previous session following reports that U.S. corn, soybeans and spring wheat grades deteriorated last week.
Meanwhile, domestic wheat prices in Russia rose. The beginning of stabilityU.S. commodity prices could rise in the coming months, indicating stronger demand even if domestic farmers aren’t ready to sell yet, said Arlan Suderman, chief economist at StoneX Commodities, according to Bloomberg.
“It is further confirmation that Black Sea cash wheat prices have bottomed out, and Black Sea wheat really defines the market,” Sudirman said.
CBOT wheat (W_1:COM) for December delivery has been completed. +1% to $5.41 1/2 a bushel, but November soybeans (S_1:COM) held steady. -1% To $9.77 per bushel and corn prices closed in December (C_1:COM) -0.6% to 3.90 1/2 per bushel.
Exchange-traded funds:New York: Whit), (SOYB), (CORN), (DBA), (MOO)
The U.S. farm belt is headed for a bumper crop, which could lead to a big increase in production. Farmers are unhappyDow Jones Report.
Weak grain prices are making 2024 a financially difficult year for food farmers, and rising costs of basic agricultural inputs such as seeds and fertilizers are negatively impacting revenues.
Reports indicate that some farmers are being forced to consider actions they would prefer to avoid, such as using less fungicides and fertilizers, and are delaying capital investments that would boost productivity and profits over time.