Wheat prices in Chicago slashed amid significant crop progress in the US
Wheat prices in Chicago fell again sharply, in a context of significant crop progress in the USA, Agritel reports. Moreover, from a technical point of view, breaking the 5 USD/bu(0.027 t) support led to speculative sales.
As experts note, the agricultural commodities market is also showing uncertainty about the demand, in a context where the coronavirus pandemic does not seem to have had its last word.
"The anticyclonic conditions in the USA are certainly favourable for wheat harvests but create a climatic risk for corn. Note that on this last product, the funds have a very large short position, which can be reduced by buying back positions in the case of adverse weather conditions," the report reads.
Learn more: Wheat Production in Ukraine: 2020 Crop Forecast and Weather Risks
Earlier it was reported that the Memorandum of Understanding between the Ministry of the Development of Economy, Trade and Agriculture of Ukraine and grain market participants will be signed on July 1 to ensure the projected grain export volume in the 2020/21 season.
