US wheat wins, corn & soybeans sweat

Jul 08, 2024

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

By Farms.com

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.

Video: How farmers are protecting the soil and our food security | DW Documentary

For a long time, soil was all but ignored. But for years, the valuable humus layer has been thinning. Farmers in Brandenburg are clearly feeling the effects of this on their sandy fields. Many are now taking steps to prepare their farms for the future.

Years of drought, record rainfall and failed harvests: we are becoming increasingly aware of how sensitively our environment reacts to extreme weather conditions. Farmers' livelihoods are at stake. So is the ability of consumers to afford food.

For a few years now, agriculture that focuses solely on maximum yields has been regarded with increasing skepticism. It is becoming more and more clear just how dependent we are on healthy soils.

Brandenburg is the federal state with the worst soil quality in Germany. The already thin, fertile humus layer has been shrinking for decades. Researchers and farmers who are keen to experiment are combating these developments and looking for solutions. Priority is being given to building up the humus layer, which consists of microorganisms and fungi, as well as springtails, small worms and centipedes.

For Lena and Philipp Adler, two young vegetable farmers, the tiny soil creatures are invaluable helpers. On their three-hectare organic farm, they rely on simple, mechanical weed control, fallow areas where the soil can recover, and diversity. Conventional farmer Mark Dümichen also does everything he can to protect soil life on his land. For years, he has not tilled the soil after the harvest and sows directly into the field. His yields have stabilized since he began to work this way.

Isabella Krause from Regionalwert AG Berlin-Brandenburg is convinced after the experiences of the last hot summers that new crops will thrive on Brandenburg's fields in the long term. She has founded a network of farmers who are promoting the cultivation of chickpeas with support from the scientific community.