Saturday , January 23 2021
Home / Commodity Blog / Wheat Joins Broader Market Rally Amid Crop Concerns

Wheat Joins Broader Market Rally Amid Crop Concerns

Summary:
Wheat futures joined the broader rally in the financial markets on Tuesday as investors highlighted their concerns over potential crop losses amid adverse weather conditions. After a couple of months of a downward pattern, wheat prices have been soaring in 2020, adding to the agriculture sector’s boom. Is wheat ready to test by the year’s end? March wheat futures rose %excerpt%.095, or 1.57%, to .14 per bushel at 16:31 GMT on Tuesday on the Chicago Board of Trade (CBoT). Wheat prices have climbed more than 16% since August, adding to their year-to-date increase of nearly 10%. Although temperatures have been warmer than what the models had forecast last month, industry experts now contend that there will unlikely be significant cold patterns forming in the US and eastern Black Sea regions.

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Vladimir Vyun writes Video: Agricultural Commodity Bull Market in 2021? Why Are Wheat, Sugar, and Cotton Prices Soaring?

Andrew Moran writes Wheat Slumps Despite Russia Raising, Extending Export Tax

Andrew Moran writes Commodities Week in Review: January 4 to January 8

Andrew Moran writes Commodities Week in Review: December 28 to January 1

Wheat futures joined the broader rally in the financial markets on Tuesday as investors highlighted their concerns over potential crop losses amid adverse weather conditions. After a couple of months of a downward pattern, wheat prices have been soaring in 2020, adding to the agriculture sector’s boom. Is wheat ready to test $7 by the year’s end?

March wheat futures rose $0.095, or 1.57%, to $6.14 per bushel at 16:31 GMT on Tuesday on the Chicago Board of Trade (CBoT). Wheat prices have climbed more than 16% since August, adding to their year-to-date increase of nearly 10%.

Although temperatures have been warmer than what the models had forecast last month, industry experts now contend that there will unlikely be significant cold patterns forming in the US and eastern Black Sea regions. This could affect the vulnerable winter wheat crop.

This comes as the US Department of Agriculture (USDA) rated 43% of the winter wheat crop to be in good to excellent condition. This is down from 46% in the previous week, but the USDA rating is better than the market expectation of 42%.

Demand continues to intensify in the global wheat market. China, for example, is predicted to import more than 7.5 million tons in the 2020–2021 marketing season. Beijing is looking to expand its grain imports because of a crop shortfall this past summer due to widespread flooding and the coronavirus pandemic.

Despite strengthening foreign consumption, the international wheat market is prognosticated to remain in balance. The USDA has increased its forecast for 2020–2021 global wheat ending stocks by 2.1 million tons to a record 321.5 million tons, which is mostly driven by ballooning output by Russia.

A weaker greenback has contributed to the overall agriculture sector. The US Dollar Index, which gauges the greenback against a basket of currencies, fell 0.21% to 92.32, from an opening of 92.53. A lower buck is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase. The index has slumped 4.25% year-to-date.

In other agricultural markets, January corn futures shed $0.02, or 0.46%, to $4.3125 per pound. January soybean futures slipped $0.0425, or 0.36%, to $11.8725 a bushel. February coffee futures declined $0.0105, or 0.9%, to $1.16 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2020. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *