For another session, wheat advanced on the Chicago Stock Exchange, as supply concerns have not yet subsided. As a result, cereal shares for July closed up 0.28%, to US$ 6.2225 a bushel, the fifth consecutive increase.
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“Even with the possibility of making profits, the funds seem to relate the price level to the fundamentals of the agricultural market, something that has not happened for many months”, highlights the Granar consultancy, in a report. Currently, wheat values have reached a more than three-month high.
Among the factors that supported wheat, Granar highlights the lack of moisture in southern Russia, especially in Rostov. The consultancy says that the adverse scenario already leads many agents to estimate a Russian harvest below 90 million tons for the 2024/25 cycle
The cereal also remained valued due to the adverse conditions in winter crops in the United States. Kansas, the largest producing state, is the one that needs the most rain at the moment.
The lower production expected in the European Union was another reason that maintained the trend of high prices. In this sense, the European Commission yesterday reduced its forecast for the bloc’s wheat harvest in 2024 to the lowest level in four years, as a result of the projected reduction in the planted area. The agency adjusted its estimate from 120.80 million to 120.20 million tons.
