Wheat futures experienced a downward trend on Friday, signaling their first daily loss in nine sessions. The decrease came after the release of a monthly supply and demand report by the U.S. Department of Agriculture. This report revealed an increase in the global wheat production forecast for the 2023/2024 marketing year, estimated at 783.01 million metric tons, a rise of around 1 million metric tons.
However, despite the abundance of wheat, it is noteworthy that global consumption is projected to exceed production, according to Sal Gilbertie, the CEO of Teucrium. This provides an interesting dynamic in the market.
Soybean futures show slight decline on reduced global production forecast
Soybean futures also experienced a minor dip following the release of the USDA report. The forecast for global soybean production in the 2023/2024 marketing year was revised downwards by 1.5 million metric tons to 398.88 million metric tons. This adjustment is attributed to lower production levels in Brazil.
In contrast, Brazil's soybean export forecast was raised by 2 million metric tons, while the U.S. export forecast remained unchanged. Darin Newsom, a senior market analyst at Barchart, commented on this situation, suggesting that the ongoing trade war with China has relegated the U.S. to a secondary role in the global soybean market.
In Chicago, the most active March wheat futures contract (WH24) witnessed a decline of 13 ¼ cents or 2.1%, trading at $6.29 per bushel. Similarly, January soybeans (SF24) fell by 5 cents or 0.4%, priced at $13.06 ¾ per bushel. Overall, these numbers reflect the impact of the USDA's report on the market.
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