Grain futures prices expected to scale up more

Futures for agricultural commodities on the Chicago Stock Exchange (CHX) continued growing due to the delay in spring sowing campaign as weather conditions remain unfavourable for many regions of the USA, Agritel reports.

"The weather forecast for the coming days shows no significant improvement, provoking a further increase in prices since pre-market trading this morning," the report says.

The current corn sowing progress indicators make up 58 per cent, soybeans — 20per cent. This may result in a sharp sowing area reduction.

“As for winter wheat, all the crops here are monitored and are now in the flowering (anthesis) stage or at the end of it, depending on the region. “Good and excellent” condition rates of crops decreased to 61 per cent vs. 66 per cent last week, which is still higher than the figure of 38 per cent crops last year,” the Agritel specialists noted.

Analysts of the company emphasize that it is difficult to determine the areas that will not be sown and how this will affect the yield indicators taking into account the delay in sowing and crops condition.

Wheat prices in the US and the EU rose sharply against the backdrop of a further precipitation forecast for the Great Plains and the Midwest, which will reduce the rate of spring wheat sowing and significantly worsen the quality of it.