3 weeks ago

Wheat Climbs Ahead of USDA Report on Tightening Grain Supply

Wheat Climbs Ahead of USDA Report on Tightening Grain Supply
Wheat Climbs With USDA Seen Tightening Global Grain Supply · livemint.com

Wheat is a grain used to make bread and other foods.

People buy and sell wheat in special markets, and the price changes depending on how much wheat is available.

Lately, the price of wheat has gone up.

That's because dry weather in the United States hurt the wheat crops, and farmers had also planted less wheat than before.

At the same time, Russia and Ukraine are fighting, and they are attacking ships and places that store grain.

Together, these two countries send a lot of the world's wheat to other countries by sea, through a place called the Black Sea.

People worry that the wheat won't be able to get through safely.

Because of this, bread and other food prices could go up.

Turkey also stopped some of its ships from traveling in the Black Sea for a little while because it is dangerous.

Next week, experts in America will share a big report about how much grain the world has, and everyone is watching to see if there will be enough.

Key facts

Price move
Chicago wheat futures rose as much as 2.5%
Price level
Highest since July 30
Key event
USDA monthly supply-demand report expected Wednesday
Expected change
Declining US and global wheat and corn supplies; US corn yield edging downward
Black Sea export share
Russia and Ukraine ship over a quarter of world wheat and a 10th of corn
Turkey action
Temporarily halted Black Sea transits for its vessels over the weekend
Investor positioning
Net bearish bets in Chicago wheat futures increased
USDA prior move
Last month hiked Russia and Ukraine wheat production estimates

Quotes

Hightower Report

Bloomberg market analysis report

“The overly bearish sentiment for wheat has shifted to neutral.”
livemint.com
“Global fundamentals are strengthening.”
livemint.com

Sources

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