Road through wheat field

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Chicago wheat futures fell for a fifth straight session on Thursday, with analysts citing lower than expected export sales for U.S. wheat, a stronger dollar and the apparent success of Ukraine’s grain export corridor.

CBOT wheat (W_1:COM) for September delivery settled -4.2% to $7.48 per bushel, soybeans (S_1:COM) for November delivery closed +1.1% to $14.05 1/4 per bushel, and December corn (C_1:COM) ended +0.5% to $6.15 per bushel.


The U.S. Department of Agriculture reported export sales of U.S. wheat during the week ended August 11 totaled 207K metric tons, a marketing year low and 46% below the previous four-week average.

Meanwhile, Ukrainian grain flows are pushing down prices, as 500K-plus tons of foodstuffs – well below the normal pace but enough to provide some relief to grain supplies – were exported from the country’s Black Sea ports in the first half of August under the U.N.-brokered grain export deal agreed late last month.

Soybean futures were supported by stronger than expected U.S. export sales totaling nearly 1.4M metric tons, with new crop sales to China boosting demand.

Expectations of rain and cooler temperatures in the coming week across parts of the U.S. Midwest limited the gains in soybeans and corn, analysts said.

“The factors that will create shortages and high prices remain a clear and present danger for the wheat market,” Andrew Hecht writes in a bullish analysis posted recently on Seeking Alpha.

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By admin