US wheat falls to pre-war levels in Ukraine; corn, soy also drop
CHICAGO — U.S. wheat futures fell Friday to levels not seen since Russia invaded Ukraine in February, disrupting flows from the Breadbasket of the Sea region Noire, under pressure from a stronger US dollar and increased global supplies from the Northern Hemisphere harvest.
Soybeans and corn fell in tandem with wheat in risky trade ahead of the long US Independence Day holiday weekend and concerns over tepid demand and the broader economy.
High inflation and a rush by central banks to raise rates and stem the flow of cheap money fueled market sell-offs, putting pressure on grain prices that had reached near-record highs after the Russian invasion.
“Outside markets are definitely a factor, especially if you’re talking about a shift in Federal Reserve policy and an exploding dollar higher,” said Mike Zuzolo, president of Global Commodity Analytics.
Benchmark Chicago wheat futures fell nearly 40% from a March high as some grain shipments began pouring in from Ukraine and winter wheat harvests accelerated in the United States. northern hemisphere strengthens supplies.
“When the problems with Ukraine started to happen, we had to aggressively ration old crop prices. … Now that all this new crop is coming to market, we no longer need to ration the old crop. priced so aggressively,” said Craig Turner. , senior agricultural broker at Daniels Trading.
September CBOT wheat fell 38 cents to $8.46 a bushel, the lowest since late February and down 9.7% over the week.
November new crop soybeans hit their lowest level since Feb. 4 and finished down 62 3/4 cents at $13.95 1/4 a bushel. CBOT December corn fell 12 1/4 cents to $6.07 1/2 a bushel, down 9.9% for the week and a four-month low.
After initially rising after Thursday’s US Department of Agriculture acreage report, traders are waiting to see if the drop in soybean plantings will change.
They are also monitoring the rain forecast next week for the arid regions of the Midwest.
(Reporting by Karl Plume in Chicago; Editing by David Gregorio and Will Dunham)