Wheat Extends Losses on Concerns Over Ample Supply, Soft Demand

Wheat extended losses as concerns over adequate supply and soft demand offset hostilities in the Black Sea region.

Futures in Chicago fell for a second session after rallying to the highest level in more than a month last week. Ongoing issues with Russian export shipments have failed to support prices, analysts at Milwaukee-based Brock Associates Inc. wrote in a note.

The condition of the US winter wheat crop is slightly better than expected and vastly improved on last year, according to a progress report from the US Department of Agriculture.

“It’s hard to move away from the fact that large supplies are going to come online mid-year,” said Dennis Voznesenski, associate director of sustainable and agricultural economics at Commonwealth Bank of Australia. “Lackluster demand is also a constant issue the market is dealing with.”

The crop progress served as a fresh reminder that the 2023/24 US winter wheat crop is in relatively good shape, Jacqueline Holland, an analyst at Farm Futures, said in a note.

Tags: futures, prices, winter wheat, US, wheat, crop