Wheat Rebounds Ahead of WASDE Report

Chicago wheat futures were at $7.3 per bushel, rebounding from the 14-month low of $7.05 hit on December 6th as investors readjusted positions ahead of the USDA’s WASDE report due today.

Still, prices hover well below levels before February as Russia’s invasion of Ukraine threatened global supply.

Top exporter Russia achieved a record-high harvest in the current marketing year, extending competition into North America as poor export data divulged by the USDA without any production problems drove bids to decline in price.

In the meantime, shipments from Ukraine continued after Russia agreed to extend the deal that guarantees a trade corridor for vessels carrying Ukrainian grain in the Black Sea for another four months.

According to Ukrainian authorities, the country was able to export more than 11 million tonnes of grain by ships since the start of the deal on August 1st, significantly easing shortage concerns despite reporting a 6% drop in farm acreage due to destruction from the war.