Wheat surges 2.5% amid weather premium and Middle East tensions 📈

Wheat (WHEAT) on Chicago's CBOT commodity exchange is gaining nearly 2.5% today. Precipitation in Rostov-on-Don, Russia's key winter wheat-producing region, is roughly 60% below average over the past seven months (the driest period in 30 years) and conditions are likely to remain unchanged until mid-October, putting the haying season in question. Wheat export prices from Russia have risen significantly. AgResource reported a $4 per-metric-ton improvement to Russian wheat export prices, to $222 per ton, pressuring also Chicago wheat prices higher

• An analysis by consulting firm Andersons showed that up to 60% of the world's wheat stocks are in China, and excluding China, the worldwide stock situation was much worse.
• Currently, planting has also been halted in much of the UK due to heavy rainfall in September and projected further rainfall in October.
• The weather premium, is supported not only by drought in Russia and the Black Sea region, but also by drought in the southern plains regions of the US.

Wheat prices (WHEAT) are gaining strongly today, and are in the upper range of the upward channel. The market can look forward to the release of USDA WASDE production and demand estimates, October 11

Source: xStation5

Weather for Russia as of September 30, 2024