On Tuesday, the Chicago board of Trade’s most active wheat futures’ prices had extended their blowout streak of gains into a fifth straight session, spiking to roughly two-month peak, as a USDA (US Department of Agriculture) report had underpinned the possibilities of a poor harvesting season for the drought-hit US spring wheat.
Aside from that, Chicago corn futures had gained tractions as lower crop rating missed estimates, imperatively shifting market participants’ attention back to the severe droughts in multiple regions across the US Midwest.
Alongside this, Chicago soybean futures’ prices also had shelved modest gains after experiencing a pernicious plunge a session earlier, as a warm and dry weather forecast across the US Midwest region had weighed heavily on investors’ sentiment ahead of soybean’s summer growth period.
On top of that, the USDA had published a report late on Monday saying that an eleven percent of US Spring wheats could be rated as good or excellent, sharply down from a prior estimate of 16 per cent made a week earlier.
Chicago wheat hits 2-month high after USDA’s downbeat projection
Concomitantly, the Chicago wheat futures’ prices had also been catalysed by a USDA forecast published last week that said the US Spring wheat production would likely to contract by the most in 33 years, eventually skyrocketing the grain’s prices.
Citing statistics, in the day’s Chicago grain market closure, the Chicago Board of Trade’s (CBOT) most active wheat futures’ prices rose to $7.06-1/4 per bushel (27.21 kilograms) after hitting $7.18 per bushel earlier in the session, the contracts’ highest since May 18.
Aside from that, Chicago corn advanced 16 cents to $5.68-1/4 per bushel (25.40 kg), while soybean futures’ prices rose 24.25 cents to $13.27 per bushel (60 pounds or 27.21 kilograms). Meanwhile, the CBOT grains would likely to meet with a contemptuous consequence this year, a market analyst at Risk Management Commodities, John Zanker said, “That crop’s just being torn apart”.