Wheat futures on the Chicago Board of Trade (CBOT) hit multi-month lows, which put pressure on Western Canadian wheat bids, during the week ended Thursday.
Despite tighter wheat supplies in the U.S. and worldwide compared to last year, as well as the ongoing Russian invasion of Ukraine, wheat futures reached depths which weren’t seen for months.
On Dec. 5, the March Minneapolis spring wheat contract declined to US$9.04 per bushel, its lowest price since Sept. 8. The next day, the March Kansas City hard red wheat contract dipped to US$8.2175/bu., the lowest price since Aug. 19, while the March Chicago wheat contract fell to US$7.235/bu. for the first time since Oct. 12, 2021.
The recent weakness in wheat prices can be attributed to a lesser amount of U.S. wheat exports. Net weekly U.S. wheat export sales as of Dec. 1 were 189,900 tonnes near the lower end of trade expectations ranging from 150,000 to 350,000 tonnes. Expectations of a record wheat crop in Australia at 36.6 million tonnes, despite quality concerns, as well as Russian wheat supplies threaten to lessen the demand for U.S. wheat.
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