Chicago wheat futures prices are falling for the second year in a row this morning as predictions of mild temperatures and some rain in key US growth regions fuel expectations of a bumper crop.
Soybean prices rose for the second year in a row, while corn rose for the third consecutive trading day. However, the forecasts of almost record-breaking production in Brazil and Argentina limit profits.
Decreasing concerns about Omikron's coronavirus variant are increasing pricing pressure.
"US wheat prices are currently at a new low since the advent of the Omikron variety," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
"The lack of a rebound in wheat prices now that Omikron fears are subsiding is understandable. The appearance of Omikron was more of a catalyst for some investors to exit multiple markets at once, including wheat."
US weather models predict mild temperatures. That should help the US fields before their winter dormant phase.
Brazil's grain harvest is expected to reach a record $ 289 million in 2022.Tons, a 14% year-over-year increase, farm group CNA said yesterday, adding that the country's grain and oilseed production should hit 300 million tons in "a year or two."
Source
Hansa Terminhandel GmbH