US Wheat Prices Gains As Crop Downgrades and Reduced Russian Exports

Chicago wheat futures continued their upward trend into the second trading session this week, nearing a two-and-a-half-week high. The price increase follows concerns triggered by a recent US Department of Agriculture (USDA) report highlighting declining conditions of winter wheat crops, particularly in Kansas, the largest wheat-producing state.

On the Chicago Board of Trade, wheat futures increased by 0.60%, driven primarily by recent unfavorable weather conditions impacting crop growth.

US Wheat Crop Condition and Weather Impact

According to the latest USDA report, the percentage of Kansas winter wheat rated as good-to-very-good fell from 52% to 48% within a week. With the harvest season roughly three months away, this deterioration in crop quality has heightened market concerns.

Current dry weather conditions in the southern plains, along with recent storm damage in the Midwest and Plains states, are further stressing wheat crops during a critical growth stage.

Global Market Conditions and Competition

Slowing wheat exports from Russia, the largest global exporter, have provided additional support to US wheat prices. Consultancy firm Sovicon expects Russian wheat exports to decline during March, enhancing demand for US wheat in international markets.

Market Prices and Changes

Soybean and Corn Market Update

Soybean futures rose slightly by 0.20%, reaching USD 0,37 per kg. Gains were limited due to lower-than-expected crushing data from the National Oilseed Processors Association (NOPA), indicating the lowest monthly soybean crush in five months. Additionally, Brazil's rapid soybean harvest, already at 70% completion—the fastest pace in 14 years—has exerted pressure on prices.

Corn futures softened marginally by 0.10%, settling at USD 0,18 per kg, reflecting mixed market signals and ongoing assessments of global supply conditions.

Market participants remain watchful of crop updates and global trade developments, influencing the near-term price outlook.