Story
CBOT Wheat Futures Set for Lower Open on Improved US Crop Conditions
Summary
Chicago wheat futures are expected to open lower on Tuesday, pulling back from a recent rally as improved U.S. spring wheat crop ratings offset ongoing concerns about Black Sea supply disruptions.
Chicago wheat futures are projected to open 7 to 9 cents lower per bushel on Tuesday, marking a retreat from recent gains that were driven by geopolitical tensions in the Black Sea region. Trading at the Chicago Board of Trade (CBOT) is set to resume at 8:30 a.m. Central Time.
Market Movers
The pullback follows a period of upward momentum for wheat prices. In early trading indications:
- CBOT September soft red winter wheat was last quoted down 8.5 cents at $6.42-1/2 per bushel.
- Kansas City September hard red winter wheat fell 7.5 cents to $7.09-3/4 per bushel.
- Minneapolis September spring wheat was down 5 cents at $6.90 per bushel.
US Supply Outlook Improves
Downward pressure on prices is stemming from the domestic supply outlook. According to a weekly report from the U.S. Department of Agriculture (USDA) released Monday, the condition of the U.S. spring wheat crop improved.
AdThe agency rated 55% of the crop as being in "good-to-excellent" condition, an increase from 53% the previous week. Improved crop ratings can signal a larger or more stable harvest, which tends to weigh on futures prices.
Black Sea Risks Remain
The expected decline comes after a rally fueled by renewed fears that the conflict between Russia and Ukraine could further disrupt grain exports from the critical Black Sea region. These concerns were heightened after a drone attack near Russia's Novorossiysk port seriously injured three crew members on a Turkish-owned vessel.
In response to the incident, Turkey has called on both Russia and Ukraine to take measures to ensure the safety of maritime navigation in the Black Sea. The persistent risk of supply disruptions from the region continues to provide a floor for prices, creating volatility for grain markets.
Read next
More on Commodities
US-China Summit to Tackle Key Commodity Disputes in Agriculture, Energy
The upcoming meeting between President Trump and President Xi is expected to focus on resolving trade frictions involving U.S. agricultural exports, Chinese energy tariffs, and the supply of critical rare earth materials.
Citi Warns Hawkish Fed Policy Threatens Non-AI Economic Growth
A recent report from Citi Research warns that the Federal Reserve's hawkish monetary policy could suppress the U.S. housing market and make the broader economy dangerously dependent on AI investment.
Petrobras Board Approves Participation in New Government Diesel Subsidy Program
Brazil's state-run oil company, Petrobras, will join a new government program providing a 1.00 real per liter subsidy on diesel, a move aimed at stabilizing fuel prices ahead of the upcoming presidential election.
Oil Prices Retreat as China Urges Iran to Curb Houthi Attacks on Saudi Facilities
Crude oil futures fell on Friday after reports that China, at Saudi Arabia's request, pressured Iran to rein in Houthi attacks, easing some geopolitical supply fears. However, ongoing pipeline disruptions and refining constraints continue to support the market.