Latest news with #wheat
Yahoo
3 hours ago
- Business
- Yahoo
Wheat Returns from Holiday Break to Some Profit Taking
Wheat is giving back some of the big Wednesday gains here on Friday, mostly down 3 to 5 cents at midday. The wheat market was rallying at a double digit pace across the three markets on Wednesday, as shorts were busy covering their large positions amid heat and dryness concerns in Europe and wet weather delays in Kansas. July options expire today. Export Sales data from this morning showed 427,170 MT of wheat sales for the 2025/26 marketing year in the week of June 12, in the middle of the trade estimates of 300,000 MT to 600,000 MT. That was improved from the week prior, but 27.56% shy of the same week last year. Sugar Futures Remain Bearish- Can the Sweet Commodity Rally? Drought Conditions Are Setting In. How Much Higher Can Wheat Prices Go? Coffee Prices Sharply Lower as Global Supply Concerns Ease Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The past couple days have seen drier weather in parts of the Southern Plains, with the forecast calling for very little precip, with exception to parts of northwest KS. There was very little harvest activity on a run from Wichita through Abilene and up into NE on Thursday, due to wet soils. Some districts in the Krasnodar region in Russia, a large wheat producing region, have declared a drought emergency, following a similar move in the Rostov region last week. Russia is still officially expecting both production (90 MMT per the ag minister) and wheat exports to be above year ago. The French soft wheat crop is estimated at 68% good/excellent according to FranceAgriMer, down 2 points from last week. Jul 25 CBOT Wheat is at $5.70 1/4, down 4 cents, Sep 25 CBOT Wheat is at $5.86, down 4 1/2 cents, Jul 25 KCBT Wheat is at $5.65 1/4, down 6 cents, Sep 25 KCBT Wheat is at $5.80 3/4, down 5 3/4 cents, Jul 25 MGEX Wheat is at $6.40 3/4, down 5 1/2 cents, Sep 25 MGEX Wheat is at $6.58, down 3 1/2 cents, On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 hours ago
- Business
- Reuters
Afghanistan turns to Russia for some food supplies amid Iran-Israel war
Russia, June 20 (Reuters) - Afghanistan is in discussions with Russia to import certain foodstuffs as the conflict between Israel and Iran, one of its largest trading partners, risked cutting off supplies, its agriculture minister told Reuters. As relations between Russia and the Taliban government have been improving, an Afghan delegation is visiting Russia's main economic conference in St. Petersburg this week, meeting Russian agriculture officials. "Afghanistan is definitely aiming for self-sufficiency in its agricultural products. However, we still rely on some food items that come from Iran, and if problems arise there, it will undoubtedly have its effects," Ataullah Omari said on the sidelines of the conference. Iran supplies Afghanistan with some dairy products, among other commodities, and there is widespread concern the week-old war between Israel and Iran could disrupt trade flows Russia - the world's largest wheat exporter - and Kazakhstan are the main suppliers of wheat and flour to Afghanistan. Russia is also supplying sugar and vegetable oil. Omari said that the country is now seeking wheat rather than flour from Russia. Afghanistan, the top buyer of Russian flour in 2024, increased its own wheat production by 10% last year to 4.83 million metric tons. The country's total wheat consumption is estimated at 6.8 million metric tons a year. "For the past four years, since the withdrawal of the Americans, we have been making efforts to provide our essential food supplies ourselves. The remaining amount, including flour and wheat, is supplied annually by Russia," Omari said. "We have requested that Russia send us wheat instead of flour. Additionally, the import of other products that come from Russia to our country annually is progressing well," he added. In April, Russia lifted its ban on the Taliban, which it had designated as a terrorist organisation for more than two decades, paving the way for Moscow to normalise ties with Afghanistan's leadership. Since 2022, Afghanistan has imported gas, oil, and wheat from Russia, marking the first major economic deal after the Taliban returned to power, facing international isolation following 20 years of war against U.S.-led forces. Omari expressed concern about Afghan refugees living in Iran who could become victims of Israel's attacks. The UN Refugee Agency (UNHCR) estimates that nearly 4.5 million Afghan nationals reside in Iran. "Any kind of damage that occurs there is absolutely unsatisfactory for our nation and our people, especially for many of our refugees who live there and are our brothers," he said.
Zawya
9 hours ago
- Business
- Zawya
Chicago wheat slips as harvest pressure sets in; soybeans set for weekly gain
BEIJING - Chicago wheat futures pulled back on Friday after a pre-holiday short-covering rally in the U.S., as harvest pressure looms in Europe and the Black Sea region. The most-active wheat contract dropped 0.59% to $5.87 a bushel, as of 0211 GMT, but remains near a four-month high and is set for a weekly gain. Wheat found some support in the previous trading session, as weather concerns in parts of the U.S. and Europe prompted speculators to cover short positions. "We think that most of the rally will be given back over the next week due to harvest pressure just about to come along in EU and Black Sea," said Ole Houe, head of advisory services at IKON Commodities in Sydney. Soybeans rose 0.02% to $10.75 per bushel and remained on course for a third consecutive weekly gain. Strength in the energy market this week, driven by heightened tensions between Israel and Iran, has lent support to agricultural commodities like soybeans and corn. Higher crude oil prices enhance the appeal of soyoil and corn as biofuel feedstocks. Corn eased 0.17% to $4.32-6/8 a bushel, with prices hovering near their lowest level of 2025. Corn is poised to end the week lower. "Corn is holding the line as no real news and the Israel attacks are not enough to keep any enthusiasm in the face of a 400 million metric tons of U.S. corn crop," Houe said. In Argentina, corn yields are exceeding initial expectations in some areas for the 2024/25 crop, the Buenos Aires Grains Exchange said on Thursday, though it maintained its overall harvest forecast at 49 million metric tons as excessive moisture slowed fieldwork. Traders are awaiting market direction from the U.S. Department of Agriculture's weekly export sales report, which will be released later on Friday.
Zawya
a day ago
- Business
- Zawya
US wheat surges 4% on short-covering, lifting corn and soy
CHICAGO, June 18 (Reuters) - Benchmark Chicago Board of Trade wheat futures jumped more than 4% on Wednesday as weather worries in parts of the United States and Europe, coupled with signs of fresh global export business, prompted speculators to cover short positions, brokers said. Corn and soybean futures followed the higher trend ahead of a U.S. government and market holiday on Thursday. CBOT July wheat settled up 25-1/4 cents, or 4.6%, at $5.74-1/4 per bushel after reaching $5.75, the contract's highest price since March 24. CBOT July soybeans ended up 3/4 cent at $10.74-3/4 a bushel and July corn finished up 2 cents at $4.33-1/2 a bushel. Wheat posted the biggest advances. Commodity funds hold a hefty net short position in CBOT wheat futures, leaving the market vulnerable to short-covering rallies, analysts said. "Anybody that sold Chicago wheat in the last couple of months is under water. So short-covering is the big thing, and you've got a few smaller stories that are supporting and encouraging that," said Terry Linn, analyst with Linn & Associates in Chicago. He noted that Algeria booked more than half a million metric tons of wheat in a tender this week, according to European traders. In addition, the U.S. winter wheat harvest is off to a slow start due to wet conditions, while parts of Russia and the European Union have been dry. Soybean futures inched higher while soyoil futures ended nearly unchanged, consolidating after a spike last Friday tied to larger-than-expected proposed U.S. biofuel mandates. The implied increase in domestic demand for soyoil has muted some of the concern about a slowdown in U.S. soybean exports due to trade tensions with China, the world's biggest soybean customer. "Having this domestic demand mandated is a huge relief, and it changes the fundamental complexion of the (soybean) balance sheet," Linn said. Corn futures rose along with wheat, but the most-active July contract trailed the gains in deferred contracts, reflecting easing concerns about tight supplies of last year's U.S. corn harvest and rising competition for export business, which has been a mainstay for U.S. corn futures. "Even though corn demand has been good so far, you just haven't had any additional demand develop. And at the same time, Brazil brought home a massive crop. And that is going to be competing with us here for a while," Linn said. Traders await market direction from the USDA's weekly export sales report, which will be released on Friday, a day later than usual, due to the U.S. Juneteenth holiday on Thursday. (Reporting by Ella Cao and Lewis Jackson in Beijing and Sybille de La Hamaide in Paris; Editing by Harikrishnan Nair, Rashmi Aich, David Goodman, Sandra Maler and Deepa Babington)
CTV News
a day ago
- Business
- CTV News
'Amber waves of grain' recede in America's heartland as wheat farmers struggle
In this Friday, June 15, 2018 photo, a stalk of winter wheat stands ready to by harvested in a field farmed by Dalton and Carson North near McCracken, Kan.(AP Photo/Charlie Riedel) COLBY, Kansas — On a foggy morning in May, Dennis Schoenhals drove a carload of crop scouts around the wheat fields of northern Oklahoma, part of an annual tour to evaluate the health of the crop. But on some fields, Schoenhals and other farmers had already abandoned plans to harvest the grain for sale because prices had sunk to five-year lows. Farmers cut their losses early this year across the U.S. wheat belt, stretching from Texas to Montana. They were choosing to bale the wheat into hay, plow their fields under or turn them over to animals to graze. In Nebraska, wheat acreage is less than half of what it was in 2005. For farmers with crop insurance, damaged or unprofitable wheat fields can still earn revenue. But many agree that chasing insurance payouts is not the best business model. The Great Plains have long been celebrated for the 'amber waves of grain' in the popular hymn 'America the Beautiful.' The region's states produce most of the U.S.-grown crop of hard red winter wheat, favored by bakers for bread. But with prices hovering around $5 per bushel, U.S. wheat farmers have reached an inflection point, with many forced to either lose money, feed wheat to cattle or kill off the crop. Interviews with more than a dozen farmers and analysts across Kansas, Nebraska and Oklahoma, along with a review of U.S. Department of Agriculture data, revealed a vast disparity in profit for wheat compared to other crops. This has led farmers to abandon more fields before harvest. In parts of the region, prolonged drought has lowered yields in recent years. Farm revenue has also suffered in years with healthy rainfall, as abundant global supplies have weighed on prices. Many have pivoted to corn, soy or livestock, often after generations of their family growing wheat exclusively. 'They can't sustain that,' said Schoenhals, 68, who raises crops and cattle near Kremlin, Oklahoma, and is president of the state's wheat growers association. 'Eventually you either change to other crops if you're able to, or you go out of business,' he said. Two years ago, severe drought drove farmers to abandon about a third of the U.S. crop. This year, healthy green stalks shot through the cracked soil, and farmers had expected to harvest the most bushels per acre since 2016. But wheat prices hit a five-year low in May. Every year since 2020, farmers have abandoned between a fifth and a third of the winter wheat crop, U.S. Department of Agriculture data show. Nationwide, corn and soybeans dominate crop fields, with wheat a distant third in planted acreage. Hard red winter wheat exports hit historic lows in 2024 after drought and lower prices in other wheat-producing areas of the world squeezed the U.S. commodity's competitiveness. In Kansas, the leading U.S. producer of hard winter wheat, the disparity between acreage and value is particularly stark. About 1.3 million more farm acres in Kansas were planted with wheat than with corn in 2024, USDA data show, but corn's value of production was more than twice as high. Plentiful global supplies have kept benchmark U.S. prices stuck at lows that discourage farmers from growing wheat, producers and analysts told Reuters. Supplies are so ample that droughts in important grain-growing regions of China and Russia this year have barely budged prices. 'We're below profitable levels for these guys,' said Darin Fessler, an analyst with Lakefront Futures in Lincoln, Nebraska, who grew up on a row crop farm in nearby Sutton. The way things stand, he said, many farmers have 'eaten a lot of their own money and burned up working capital. These bankers are going to say: 'show me some profits or we're going to have some farm sales.'' Heritage but no profit Ties to wheat farming run deep in the Plains. Historically, European settlers in Kansas struggled to find a foothold until Mennonites from Ukraine arrived with seeds of Turkey Red wheat, a variety that proved able to withstand the area's dry soil, harsh winters and extreme temperature swings. The seeds spread to neighboring Oklahoma and Nebraska, where pioneers established homesteads in the sandy, light earth in which wheat thrived but other crops struggled. Hard red winter wheat has remained the main variety of wheat sown in the U.S. Images of golden stalks adorn hotel lobbies and road signs, and towns include the word in their names. Pulitzer Prize-winning author Willa Cather, a daughter of Red Cloud, Nebraska, wrote a celebrated poem describing 'the miles of fresh-plowed soil, heavy and black, full of strength and harshness.' Now, U.S. wheat growing is on a steady decline, with farmers finding surer profits from corn, soybeans or cattle. On the wheat quality tour in May, weeks before Nebraska wheat is usually harvested, no wheat could be seen for miles around Red Cloud. When Royce Schaneman joined Nebraska's wheat board 19 years ago, wheat fields stretched for 2.2 million acres across the state. Since then, acreage has shrunk to less than a million acres, he said. In Cheyenne County in southern Nebraska, the state's most productive wheat-growing land, about one in five fields was abandoned this year. 'The feeling out in the country is not good,' he said. Generations of farmers grew wheat because the crop thrived on rainfall alone. In recent decades, farmers have invested in pricey irrigation systems, experimented with hardier varieties and used fertilizer to improve yields. Agronomists have helped farmers grow more bushels per acre even as climate change has brought more drought and pests. Producers in the southern Plains have experimented with other types of wheat such as durum, the kind used for pasta, and a gluten-free variety, pursuing customers willing to pay more. Profits remain elusive. 'It's heritage, but there's no profit,' said Lon Frahm, the CEO of Frahm Farmland, a 40,000-acre operation in Colby, Kansas. Surrounding Thomas County is now dotted with wind farms. Farmers there once grew wheat exclusively, he said, but they have started to diversify due to more frequent drought and global competition depressing prices. Frahm himself now mainly plants corn. He irrigates, fertilizes and harvests the grain using multimillion-dollar machines, then stores it in gleaming, 80-foot steel grain bins. His 7,000 acres of wheat sometimes produce just 5 per cent of his farm's total output. 'There's certainly profit in corn,' he said. --- Reporting by Emily Schmall; Editing by Simon Webb and David Gregorio
