Wheat futures on the Chicago Board of Trade experienced an uptick on Monday, buoyed by a weakening U.S. dollar and expectations of diminished supply from Russia, the world’s leading wheat exporter. This trend was mirrored in the corn and soybean markets, which also saw price increases driven by strong U.S. export sales.
The most actively traded wheat contract rose by 0.8%, reaching $5.72¾ per bushel by 0507 GMT. Soybean futures increased by 0.9% to $10.03 per bushel, while corn prices climbed 0.7% to $4.17½ per bushel. After hitting four-year lows in recent months, these commodities have begun to recover amid supply concerns.
The recent decline of the U.S. dollar, which had strengthened significantly in October, has made U.S. crops more appealing to international buyers. Analysts predict that Russian wheat exports will drop in November from the record highs achieved the previous month due to new export restrictions and a decline in demand. Additionally, Russia, alongside other major wheat exporters like Argentina and Australia, has faced dry conditions impacting crop development.
Dennis Voznesenski, an analyst at Commonwealth Bank, indicated that he anticipates a gradual increase in wheat prices, citing concerns over the Russian crop’s progress as many crops are lagging in development. Meanwhile, robust export demand continues to support corn and soybean prices as U.S. farmers conclude one of their largest harvests in history. Speculators have shifted their positions, moving from a significant net short position in corn to a less bearish stance, indicating changing market sentiments.
