US wheat prices slid in the latest session, with prices trading close to last week’s lowest in almost two years, as rain in the US plains improved the outlook for crops.
“While there will need to be more rain in the central and southern plains…a wave of precipitation certainly leaves a bearish element in the market,” commodities research firm Hightower said in a report.
The most-active wheat contract on the Chicago Board of Trade fell by over 1% to $6.27 a bushel, after dipping last week to a low of $6.24 – the weakest level since July 2021.
Recent rain in the drought-hit US plains and forecasts for more have eased concerns about hard red winter wheat production.
In a sign that more Ukrainian grain may hit the market, the European Commission said last week it had reached a deal in principle to allow the transit of Ukrainian grain to resume through five EU countries that had imposed restrictions.
Egypt, one of the world’s top wheat importers, said on Saturday it was strongly considering approving the currencies of its commodity trading partners, including major wheat exporter Russia, to try to reduce the need for dollars.
A bumper Brazilian soybean crop is also expected to flow onto export markets, offsetting a drought-hit harvest in Argentina.
Large speculators increased their net short position in Chicago Board of Trade corn futures in the week. The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in wheat.
