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U.S. wheat futures extended gains for a second straight session on Wednesday, jumping as much as 1.5% in Chicago after rising 2% in the previous session following reports that corn, soybean and spring wheat ratings deteriorated in the U.S. last week.
At the same time, domestic wheat prices in Russia are beginning to firm, indicating stronger demand even if local farmers are not yet ready to sell, StoneX chief commodities economist Arlan Suderman said, according to Bloomberg.
“It’s further confirmation of a bottom in Black Sea cash wheat prices, and Black Sea really sets the market,” Suderman said.
CBOT wheat (W_1:COM) for December delivery finished +1% to $5.41 1/2 per bushel, but November soybeans (S_1:COM) settled -1% to $9.77 per bushel and December corn (C_1:COM) closed -0.6% to $3.90 1/2 per bushel.
ETFs: (NYSEARCA:WEAT), (SOYB), (CORN), (DBA), (MOO)
The U.S. farm belt is headed for a bumper crop, which could make for a lot of unhappy farmers, Dow Jones reports.
Weak grain prices are making 2024 a difficult year financially for food growers, and persistently high costs for farm essentials such as seeds and fertilizer are hitting revenues.
Some farmers reportedly are being forced to consider actions they would rather avoid, such as using less fungicide and fertilizer, and are delaying capital investments that would boost productivity and profits over time.
