Chicago: wheat climbs with the questions on planting

The price of wheat traded in Chicago have risen sharply this Wednesday, in a market wondering about the progress of the seedlings and the harvest quality. The soy is a bit fitted and the corn has declined.

read also : Coronaviruses: agriculture mobilized to find arms

"there are some concerns on the condition of the crop at this time", stresses Frank Cholly of RJO Futures. According to a report released Monday by the u.s. government, the wheat red hard spring, indeed, had been planted to 60% in the 17 may, less than the average of the last five years. The quality of the harvest of winter wheat is also a bit deteriorated. "Very volatile", the the wheat market is particularly sensitive to this kind of data, " notes Frank Cholly.

The soy is a little mounted, helped by "rumors that China is on the verge of placing orders for two or three cargoes" of the oilseed, according to Brian Hoops of Midwest Market Solutions. Corn has, for its part, registered its first decline in three sessions, according to figures on the ethanol released by the u.s. Agency information on Energy (EIA). The production of this biofuel, made from corn, has increased for the third week in a row, a sign of a consumption on the rise, but it remains well below levels prior to the pandemic Covid-19.

Measures that aid to american farmers

in addition, market players have digested the announcements of the administration's Trump, which was detailed Tuesday measures to help farmers and breeders in the u.s. affected by the crisis linked to the sars coronavirus. Agricultural producers will receive 32 cents per bushel for corn, 45 cents per bushel for soybeans and 18 cents per bushel for spring wheat on the basis of half of their production in 2019, or their stock is January 15. In total, the u.s. government has planned to subsidize up to $ 16 billion to farmers and livestock breeders affected by the pandemic.

If this plan is to provide financial support welcome to a sector in serious difficulty, judge Frank Cholly, "this should not have a major impact on the price of corn, wheat and soy". "What we need is to see the application start from the front, or we risk to see the corn falling back to under 3 dollars a bushel and soybeans under $ 8".

bushel of corn (about 25 kg) for delivery in July, the most traded, ended Wednesday at 3,1950 dollars against 3,2125 dollars at the previous close (-0,62%). A bushel of wheat for delivery in July, the most active, finished at 5,1375 dollars against 4,9875 dollars Tuesday (+3,31%). A bushel of soybeans for delivery in July, the most traded, finished 8,4675 dollars against 8,4250 dollars the previous day to the close (+0,47%).

No comment

there are currently no comments on this article.
Be the first to give your opinion !

I write a comment