Agricultural markets see mixed trajectories in first 9 months of 2024
Date
10/6/2024 4:49:53 AM
(MENAFN) In the agricultural markets, wheat prices have experienced a notable decline, dropping 7 percent per bushel on the Chicago Mercantile Exchange and reaching their lowest level since August 2020 at USD5.1425. This downturn has been primarily attributed to easing production concerns in the United States and expectations of reduced tensions stemming from the ongoing Russia-Ukraine War. The market has reacted positively to forecasts suggesting that the conflict may stabilize, thereby alleviating some of the uncertainties that have previously weighed heavily on wheat prices.
Adding to the downward pressure on wheat prices, the availability of cheaper Russian wheat has made it increasingly competitive in the global market. Reports indicating that China may cancel some of its wheat purchases from the US have further exacerbated the situation, contributing to the overall decline. Additionally, recent rainfall in the traditionally dry regions of Russia and Ukraine has helped alleviate concerns regarding supply shortages, allowing traders to feel more secure about future harvests.
Corn prices have similarly faced challenges, decreasing by 9.9 percent and hitting their lowest level since October 2020 at USD3.85 per bushel. This drop has been driven by a surge in US deliveries that has flooded the market, leading to lower prices. Unfavorable weather conditions in both Ukraine and Russia have also played a role in pushing corn prices down, as uncertainties about crop yields continue to loom.
The soybean market has not been spared from these downward trends, with prices falling significantly by 18.6 percent. Rice prices also recorded a modest decline of 2.1 percent during the same period. The combination of improving production outlooks, competitive pricing from international sources, and adverse weather conditions has created a challenging environment for agricultural commodities, with market participants closely monitoring developments for any potential shifts in pricing trends.
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