Wheat threatens to fall to correct prices in Chicago; soybeans also operate at a low | Quotes

After four days on the rise, wheat futures contracts threaten a correction on the Chicago Stock Exchange. But the drop is minimal, just 0.05%, with shares for July at US$6.03 a bushel.

Cereal prices have been supported by unfavorable weather in some producing regions. The weather is dry in the Great Plains region of the USA and 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 in recent days. 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.

Soybean contracts have fallen since dawn due to rainy weather in the American Midwest, which should benefit newly planted seeds.

Precipitation is expected in parts of the Corn Belt and the Delta early next week, the Commodity Weather Group said.

The western Midwest will see subsequent rainfall over the next six to 10 days, although the warm weather will keep things a bit dry, the weather company said.

The harvest in Brazil also puts negative pressure on prices, as the supply of grain increases.

Lots for delivery in July now fall 0.37%, quoted at US$ 11.5825 per bushel.

On top of all this, American sales are below expectations. According to the USDA, they 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.

Corn, in turn, operates stable, with contracts for July at US$4.52 a bushel.

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