Thursday, May 14, 2020

Ag Commodities: "Wheat dips to near 2-month low on abundant global supplies"

We didn't do much with wheat last year, what with the cool and the wet and the late planting of corn and soybeans on the one hand and the pigs in China dying and thus not eating along with trade war on the other, and seriously who has the time?

But this year, wheat is intriguingly cheap. We are not doing anything with it (yet) but this is an area where opportunity may arise.
From Reuters via Reuters Zawya (UAE):
Corn extends losses, soybeans fall for third straight session
U.S. wheat futures fell to a near two-month low on Thursday, weighed down by plentiful global stockpiles as coronavirus-induced lockdowns led to lower demand for the grain.

Corn edged lower, extending losses into a second session, while soybeans fell for a third straight day.
The most-active wheat futures on the Chicago Board of Trade Wv1 were 0.9% lower at $4.97-1/4 a bushel by 1136 GMT, near the session low of $4.97 a bushel - the lowest since March 18. Wheat closed down 2.5% on Wednesday.
"The market still seems to be reacting to the USDA's re-framing of the global wheat market's season 2020 outlook to a worse position," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The U.S. Department of Agriculture projected that global wheat stocks at the end of the 2020/21 marketing year would rise to a record 310.12 million tonnes, up from 295.12 million at the end of 2019/20.

September wheat futures on Paris-based Euronext fell 0.1% to 183.75 euros a tonne....
....MUCH MORE

Combining the topic of the post immediately below with this one results in April 30's "Sunspots and Agricultural Production (William Herschel does a driveby)".

See also "USDA: "World Agricultural Supply and Demand Estimates" May 12, 2020 (WASDE)"

After dipping to 496'6, Chicago wheat—not the good stuff, that's Minneapolis-traded pasta wheat—is back to UNCH at 501'6.

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