Chicago Close: Weaker Greenback Boosts Wheat

Wheat futures posted double-digit gains on Tuesday, boosted in part by a weaker US dollar.

The weaker American greenback makes US wheat appear more attractively priced to foreign, thus increasing export demand. Wheat was further supported by a Statistics Canada crop production report today that showed Canadian all wheat output for 2021 down 38.3% from a year earlier at 21.71 million tonnes due to drought on the Prairies. The French soft wheat production estimate was also downgraded, falling 600,000 tonnes to just over 36 million tonnes. December Chicago wheat gained 13 ¾ cents to $7.00 ¾, December Kansas City was up 15 ½ cents to $7.01 ¾ and December Minneapolis added 11 ¼ cents to $8.87 ¼.

Corn ended higher, boosted by unexpected decline in the condition of the crop. Monday’s USDA crop progress report pegged the crop at 58% good to excellent as of Sunday, down 1 point on the week. Most traders and analysts were expecting no change. Harvest progress of 5% complete was within trade expectations. December corn was up 7 cents $5.20 ¼ and March was 6 ¼ cents higher at $5.28 ¼.

Soybeans ended slightly weaker on harvest pressure. November slipped 2 ¼ cents to $12.82 ½ and January lost 1 ¾ cents to $12.91 ¾.

Source: DePutter Publishing Ltd.

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