Chicago Wheat Futures fell in early trading today as expectations of strong supply put pressure on the contract after rebounding more than 1% in the previous session.
Corn also traded slightly lower while soybeans rose.
"The market is still determining wheat availability. The Australian harvest is getting bigger and bigger," said Ole Houe, director of advisory services at agricultural broker IKON Commodities in Sydney.
"Australia's grain is roughly 65 to 70% harvested, we almost know what the exact harvest is. We believe it is over 38 million tons."
The US Department of Agriculture raised its estimate of world ending stocks of wheat by more than 2.38 million tons last week because production prospects for Australia, Canada and Russia were better.
Future developments from Russia, the world's largest wheat exporter, will also be decisive for the market. “One estimate assumes that Russia's winter wheat cultivation will decrease by around 1% compared to 2021.However, given normal yields, this would mean an increase in the Russian wheat harvest of 5.5 million tons in the 2022 season, ”said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia, adding that Russia's wheat export quota is due soon.
Russia has announced that it will set a grain export quota in the first half of 2022 to help secure domestic supplies amid high food inflation, and is considering setting it at 14 million tons for February 15 through June 30, sources reported.
Commodity funds on the CBoT were net buyers of wheat, soybean and soybean meal futures contracts and net sellers of soybean oil on Friday, traders said.
Corn also traded slightly lower while soybeans rose.
"The market is still determining wheat availability. The Australian harvest is getting bigger and bigger," said Ole Houe, director of advisory services at agricultural broker IKON Commodities in Sydney.
"Australia's grain is roughly 65 to 70% harvested, we almost know what the exact harvest is. We believe it is over 38 million tons."
The US Department of Agriculture raised its estimate of world ending stocks of wheat by more than 2.38 million tons last week because production prospects for Australia, Canada and Russia were better.
Future developments from Russia, the world's largest wheat exporter, will also be decisive for the market. “One estimate assumes that Russia's winter wheat cultivation will decrease by around 1% compared to 2021.However, given normal yields, this would mean an increase in the Russian wheat harvest of 5.5 million tons in the 2022 season, ”said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia, adding that Russia's wheat export quota is due soon.
Russia has announced that it will set a grain export quota in the first half of 2022 to help secure domestic supplies amid high food inflation, and is considering setting it at 14 million tons for February 15 through June 30, sources reported.
Commodity funds on the CBoT were net buyers of wheat, soybean and soybean meal futures contracts and net sellers of soybean oil on Friday, traders said.
Source
Hansa Terminhandel GmbH