Wheat futures are retreating from their two-month high on Tuesday as investors are ostensibly taking some early profits. The agricultural commodity had been climbing on global supply chain woes and intensifying global demand. But the USDA numbers are also in the spotlight. So, what is happening with the crop?
December wheat futures tumbled $0.0825, or 1.09%, to $7.5125 per bushel at 14:28 GMT on Tuesday on the Chicago Board of Trade (CBoT). Wheat prices have enjoyed an impressive October, rising close to 4%. Year-to-date, wheat futures are up more than 17%.
On Monday, the US Department of Agriculture (USDA) released its the first condition ratings for the 2022 winter wheat crop, with 46% of the crop in good-to-excellent condition, up from 41% the same time a year ago. But this is below analysts’ expectations of 54%.
The USDA also confirmed that 66% of the US corn had been harvested, while US soybean harvest was 73% complete. These are both slightly higher than last year’s harvest.
A separate report confirmed that US export inspections of corn declined close to 20% from the same period a year ago.
In other industry news, Russian wheat export prices surged amid a strong ruble and rising global grain prices. Australian demand for wheat has also been skyrocketing, with shipping slots already filling up in advance, leading to record output for the Land Down Under. In Brazil, it is estimated that soybean farmers have planted more than one-third of their fields. China sold 88.5% of wheat offered at state reserves auction as feed producers snapped on the grain that was priced lower than the current cash prices of wheat.
Commodity funds also increased their purchases of CBoT wheat contracts, as well as soybeans, soy oil, and soymeal futures.
In other agricultural commodities, December corn futures edged down $0.0075, or 0.14%, to $5.3725 per bushel. December soybean futures dipped Wheat futures are retreating from their two-month high on Tuesday as investors are ostensibly taking some early profits. $0.0075, or 0.06%, to $12.4625 a bushel. December coffee futures soared $0.0725, or 3.58%, to $2.098 per pound.