Wheat dips, corn and soybeans hold steady

Jun 12, 2024

Seasonal pressures impact U.S. grain futures

By Farms.com

U.S. wheat futures saw a decline, reaching a one-month low due to seasonal pressure from the ongoing Northern Hemisphere harvest and decreasing Russian wheat prices. Corn and soybean futures, however, remained steady, consolidating after recent lows.

The drop in wheat futures was attributed to the expanding harvest in the Northern Hemisphere, particularly in the U.S. Plains, where early yields impressed despite lower protein content than expected. Additionally, declining wheat prices in Russia, the world's top supplier, contributed to the downward trend in U.S. wheat futures.

Meanwhile, corn and soybean futures held firm as traders awaited updated weekly U.S. crop ratings. The USDA reported a slight decrease in the condition ratings for both winter and spring wheat, impacting market sentiments.

In terms of crop conditions, the USDA rated 74% of the U.S. corn crop and 72% of soybeans in good to excellent condition. These ratings were in line with trade expectations, providing stability to corn and soybean futures.

Anticipated rainfall in the Black Sea grain belt may revitalize soil moisture levels, influencing market dynamics. Turkey's halt on wheat imports until mid-October might redirect Black Sea wheat exports, potentially reshaping global grain trade.

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