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Wheat rises as traders look to USDA data for tighter grain supply
US wheat output forecasts are expected to be revised down in the USDA report due Wednesday, as dry weather and broader supply risks from the Black Sea weigh on production.
Wheat prices climbed as traders positioned ahead of the US Department of Agriculture’s monthly supply and demand report, which is expected to point to declining domestic and global grain supplies.
A Bloomberg survey cited by LiveMint Markets points to likely production declines across most US wheat classes when the USDA updates its outlook Wednesday. Analysts also expect global wheat and corn supplies to fall, with the US corn yield edging lower after dry conditions reduced planting.
The report comes amid renewed worries about export disruptions from the Black Sea, where Russia and Ukraine account for more than a quarter of world wheat shipments and about a tenth of corn. LiveMint Markets notes that attacks on grain infrastructure and vessels have renewed concerns over shipment reliability, with Turkey temporarily halting Black Sea transits for its vessels over the weekend due to heightened security risks.
Chicago’s most-active wheat futures rose as much as 2.5% to the highest level since July 30 before paring gains. LiveMint Markets also reports that recent regulatory data showed investors adding to net bearish positions in Chicago wheat futures, even as dry and geopolitical pressures keep attention on the USDA’s production numbers.
Latest closeWheat $639.50 ▼0.0%|Corn $462.00 ▲5.2%