Wheat futures traded in Chicago were set for the biggest monthly loss since November amid ample near-term supplies of the grain.
(Bloomberg) — Wheat futures traded in Chicago were set for the biggest monthly loss since November amid ample near-term supplies of the grain.
Wheat edged lower on Monday, and is set for a decline of 6% this month. Top shipper Russia is expected to post record-high exports in the second half of the season, while Ukraine is seeking to extend its Black Sea grain-export deal by one year.
Strong regional supplies are making sales more competitive, weighing on futures as traders expect the safe-corridor deal to be extended, according to Terry Reilly, senior commodities analyst at Futures International LLC. The Back Sea corridor deal ends in mid-March and negotiations for its renewal have already started.
- Read more: Russia’s Dominance in Wheat Helps Keep Lid on Prices for Now
Even so, drought has shrunk inventories in the US and Argentina, contributing to what is expected to be the smallest global wheat stockpile since the 2016-2017 growing season.Â
In the US, the immediate crop outlook is improving with more favorable weather conditions expected for Great Plains’ winter wheat after last week’s storm, Reilly said.
In other grains, soy and corn declined.
–With assistance from James Poole.
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