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Wheat prices drop

August 17, 2017

Wheat markets plunged last week after a curveball was thrown in the form of a bearish USDA WASDE report.

Increases to wheat production in the Black Sea, including revised production figures for Russia (up 5.5MMT), Ukraine (up 2.5MMT) and Kazakhstan (up 1MMT) weighed heavily on both the Chicago and Minneapolis exchanges, with values down 19c/bu and 30c/bu respectively.

With the Northern Hemisphere season now starting to wrap up, focus will turn to conditions in the south, including Australia, Argentina and Brazil. It is likely we may now start to see local conditions have an impact on the futures market, however with production prospects in Argentina holding up so far, it is yet to be seen just how much impact this will be.

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