Andrey Sizov
30.07.2024
On Monday, U.S. grain prices plunged to their lowest levels since 2020 before rebounding. December SRW wheat futures closed at $5.55/bushel ($204/mt; +1.2% compared to Friday). HRW wheat in Kansas City rose to $5.69/bushel ($209/mt; +1.3%). September Euronext wheat futures closed at €223.75/mt ($242/mt; -0.7%). September U.S. corn futures rose to $4.12/bushel ($162/mt; +0.5%).
“Prices for major agricultural commodities in Chicago plummeted at the start of the trading week amid further improvement in U.S. crop outlooks. However, active buying during the main session led to gains in corn and wheat, with most of the plunge in soybeans being bought up. It cannot be ruled out that the market anticipates a significant increase in purchases of U.S. agricultural products.”
Andrey Sizov, SovEcon
- U.S. corn crop conditions improved last week. The USDA rated 68% of corn crops in good to excellent condition, up from 67% a week earlier and above the market expectation of 66%.
- The harvest of U.S. winter wheat is 82% complete, compared to 76% a week earlier and the market expectation of 83%. The share of spring wheat crops in good to excellent condition stood at 74%, down from 77% last week and 75% as per market expectations.
South Africa is facing a record drought that has destroyed a significant portion of crops, according to the UN. South Africa’s Crop Estimates Committee last week estimated corn production at 13.3 mmt, down from 16.4 mmt last season.
The Kazakh Interdepartmental Commission (IDC) has decided on a complete ban on the import of Russian wheat, with no exceptions for millers, poultry farmers, or livestock breeders, according to the Ministry of Agriculture of Kazakhstan.
