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Wheat futures recover after four-session decline

Published 12/05/2023, 02:38 pm
Updated 12/05/2023, 02:40 pm
© Reuters.

© Reuters.

Investing.com - After a week of falling prices, Chicago wheat futures experienced a 1% increase, with investors taking advantage of the lower costs. However, abundant global supplies have limited any significant gains. Meanwhile, soybeans saw a slight rise in price and corn remained steady due to stagnating U.S. exports.

Several factors contributed to the recent downward trend for these commodities: favorable weather conditions for crop growth, an uptick in the U.S dollar's value, and slow export markets were all cited as contributing factors by Hightower research firm.

Market participants are now looking forward to the upcoming USDA supply-demand report that will provide insights into potential shifts in commodity values moving forward.

Throughout this past week, demand for U.S agricultural supplies has been weak – according to data from the USDA on Thursday; weekly export sales amounted to only 340k tonnes of corn and 359k tonnes of wheat while soybean export reached just over 112k tonnes.

The anticipated release of Friday's World Agricultural Supply and Demand Estimates (WASDE) report is expected to show increased stocks for both corn and soybeans in the coming year.

In other news surrounding global grain markets, discussions continue regarding Black Sea export deals involving Russia, Ukraine, Turkey and United Nations representatives; however plentiful worldwide stockpiles keep prices suppressed thus far.

Argentina has reported its average soybean yield fell during last week due to drought-related issues that severely impacted their critical agriculture sector – current production estimates sit at around half their initial projections made back in September last year at just 22.5 million tonnes.

On a more positive note though Conab - Brazil’s food supply agency - has raised its forecasts for Brazilian soybean & corn harvests following favorable growing conditions which counteracted La Niña induced drought earlier this season; record yields are now predicted for both commodities in the latest May report.

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