Story
CBOT Wheat Futures Set for Lower Open on Improved US Crop Conditions
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.
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