Lack of rain in the US keeps wheat prices high on the Chicago Stock Exchange | Quotes

For the fourth time in a row, the price of wheat rose on the Chicago stock exchange, with unfavorable weather forecasts for some of the main producing regions. Cereal shares for July closed up 1.22% this Thursday (25/4), to US$ 6.2050 a bushel.

“Wheat rose due to drought problems in the Great Plains region of the USA. Weather maps show no rain for the next ten days. This same scenario is also expected for producing areas in southern Russia and regions of Ukraine”, highlights Luiz Pacheco, analyst at T&F Consultoria Agroeconomia.

The Russians, the world’s largest wheat producers, have dry soil conditions, and climate forecasts leave market players apprehensive, adds the analyst.

With the adverse climate scenario in American crops, the US Department of Agriculture (USDA) reported that 30% of winter wheat areas are experiencing some degree of drought. Last week, the percentage was 24%.

Also according to Pacheco, the increase in demand for US wheat favored the upward movement. The country’s net sales totaled 263.3 thousand tons for the 2024/25 harvest in the week ending April 18, above the 222 thousand tons traded in the immediately previous week.

Soy

Soybean prices have registered little fluctuation on the Chicago Stock Exchange. For the second day in a row, values ​​remained practically stable. Lots due for delivery in July 0.15%, quoted at US$ 11.7975 per bushel.

Among the factors that favored the decline, the weak result in demand for soybeans in the United States was highlighted. Net sales reached 210.9 thousand tons in the week of April 18th. A week earlier, negotiations were for 485.8 thousand tons. Analysts expected a minimum volume of 300 thousand tons.

In addition to falling demand, production prospects for the US harvest are positive at the moment.

On the high side, forecasts of drier than normal weather in some areas of the country put the market on alert, as American producers are starting planting work.

Corn

Corn increased in Chicago, reflecting the increase in demand for the cereal in the United States. Cereal contracts for July closed up 0.78%, at US$4.52 a bushel.

This Thursday, the USDA reported that net sales of US corn reached 1.3 million tons for 2023/24 in the week ending the 18th, more than double the previous week and an increase of 74% on average.