At 9:48 am (Brasilia time) this Monday (6), the May wheat contract traded on Chicago Board of Trade (CBOT) It was operating with a moderate decline of 3.75 points and 0.63%, quoted at US$ cents 594.50/bushel. Kansas City Bank Exchange (KCBT), the grain fell 6.75 points and 1.10%, to US$ cents 609.00/bushel. In the last trading session (2), the cereal futures rose 0.13% in CBOT and 0.33% in KCBT, quoted at 598.25/bushel and 615.75/bushel, in that order. On the other hand, both assets closed the week down 1.12% and 2.69%, respectively. Trading was suspended on Friday (3) due to the Good Friday holiday.
Weak demand puts pressure on prices.
This morning, prices were pressured by weak export performance. According to… United States Department of Agriculture (USDA)weekly sales totaled only 24 thousand tonsTrading volume was below market expectations. Additionally, investors are monitoring developments in the Middle East war. The possibility of a ceasefire between the US and Iran, mediated by Pakistan, could reduce tensions and influence the flow of global commodities. The plan under discussion foresees an immediate ceasefire and the reopening of the Strait of Hormuz, a strategic route through which approximately [amount missing] passes. 25% of the world’s oil and important flows of agricultural inputs.
Climate limits losses in the market.
On the other hand, losses are partially offset by climate concerns in the US. Data from Drought Monitor Data indicates that, as of March 31, approximately 47% of Kansas—the nation’s leading wheat-producing state—was experiencing drought conditions, up from 32% the previous week and 9.8% three months prior.
Wasde on the radar
Investors also position themselves ahead of the release of the monthly supply and demand report (Wasdeof USDA, scheduled for Thursday (9), which may bring new drivers to the global grain market.
This text was translated by machine from Brazilian Portuguese.