Wheat Under Pressure: Global factors drive Chicago wheat trade down to a three-year low
Trade experts point to improved outlooks for overseas wheat crops as a key factor at play in the domestic downturn.
The Chicago wheat trade is currently weathering a challenging period, with recent closures hitting the lowest point in approximately three years. A confluence of global factors is contributing to this downturn — however, experts with Commerzbank point to improved outlooks for overseas crops as a key driver.
The Australian wheat crop is experiencing better-than-expected yields, and positive signs are emerging from the European crop as well. Despite the potential for prices to reverse course, the current market remains stagnant, with risks looming large. The situation is bringing the market perilously close to its lowest levels since September.