Wheat Recovers from 16-Week Low
Wheat rose above $6.05 per bushel, recovering modestly from a 16-week low of $5.99 on October 28, after reports that China inquired about purchasing US soft red winter wheat for delivery next year. The inquiry by state-owned trader Cofco suggests recent US-China trade discussions and potential tariff reductions could lead to broader agricultural purchases. Beijing pledged to increase purchases of US farm goods, but progress beyond soybeans has been slow, with no US wheat or corn sales recorded so far this marketing year. Wheat prices have been steadily falling since hitting a 3-1/2-year high of $7.67 on August 28, with global production expected to reach its second-highest level on record and larger harvests in Australia and Argentina adding to availability. Hopes for renewed Russia-Ukraine peace talks have also weighed on prices by raising expectations of improved Black Sea grain trade, although ongoing attacks continue to pose supply risks.
Wheat rose above $6.05 per bushel, recovering modestly from a 16-week low of $5.99 on October 28, after reports that China inquired about purchasing US soft red winter wheat for delivery next year. The inquiry by state-owned trader Cofco suggests recent US-China trade discussions and potential tariff reductions could lead to broader agricultural purchases. Beijing pledged to increase purchases of US farm goods, but progress beyond soybeans has been slow, with no US wheat or corn sales recorded so far this marketing year.
Wheat prices have been steadily falling since hitting a 3-1/2-year high of $7.67 on August 28, with global production expected to reach its second-highest level on record and larger harvests in Australia and Argentina adding to availability. Hopes for renewed Russia-Ukraine peace talks have also weighed on prices by raising expectations of improved Black Sea grain trade, although ongoing attacks continue to pose supply risks.