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US wheat wins, corn & soybeans sweat

Demand lifts wheat prices, but hot weather looms for key crops


US wheat farmers have reason to celebrate after a positive day in the futures market. The price of wheat futures jumped on Friday, fueled by a confluence of favorable factors.

A weaker US dollar made American wheat more attractive to international buyers, and the arrival of a high-quality new harvest further boosted demand.

Adding to the positive sentiment, data released by the US Department of Agriculture revealed higher-than-expected wheat export sales for the upcoming marketing year. This suggests a strong global appetite for US wheat.

The outlook for other major US crops like corn and soybeans is less clear. The specter of hot and dry weather in July has cast a shadow over these crops, which require cooler temperatures and ample moisture during the crucial pollination stage. These conditions are essential for optimal yields, and their absence could lead to significant production shortfalls.

While overall trading volume remained subdued due to the recent US holiday and upcoming weekend, the price of wheat futures experienced a significant increase. September soft red winter wheat contracts closed up over 16 cents per bushel.

The price of corn and soybeans also saw modest gains, reflecting anxieties about the potential weather impact. However, these increases were smaller compared to the rise in wheat prices. Additionally, export sales data for both corn and soybeans fell short of expectations, adding to the uncertainty in these markets.

This situation underscores the inherent volatility of agricultural markets. While some crops benefit from favorable conditions and strong demand, others face potential threats from unpredictable weather patterns.

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