The price of the main Chicago-listed wheat contract fell sharply amid expectations of global oversupply. Soybeans also lost ground, while corn rebounded in the wake of a plunge.
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“The wheat market has contracted due to an abundance of reserves in the world despite the difficulties encountered by the spring wheat crops in the northern Great Plains in the United States”, notes Ami Heesch of CHS Hedging. According to figures released Monday evening by the US government, 37% of spring wheat plantings were considered “Good to excellent” as of June 13, far from the 81% at the same period last year. The proportion of high-quality corn (68%) and soybean (62%) crops is also lower than in 2020 due to droughts affecting major producing regions in recent weeks. Showers are forecast for the next few days, however, which should relieve American seedlings.
Cancellation by Egypt of a call for tenders
Wheat also suffered from the cancellation on Tuesday by Egypt of an international call for tenders passed the day before. According to le Wall Street Journal, Cairo had received 19 offers from 17 different suppliers. Egypt is one of the largest importers of wheat in the world.
The most traded bushel of wheat (about 27kg) for July delivery closed at $ 6.6150 from $ 6.7450 at the previous close, falling 1.93%. A bushel of corn (about 25 kg) for delivery in July ended at $ 6.6750 from $ 6.5925 on Monday, up 1.25%. A bushel of soybeans (about 27 kg) for delivery in July closed at $ 14.6575 from $ 14.7225 the day before, losing 0.44%.
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