Chicago wheat futures slipped from a recent 10-week high to trade slightly below $7.5 a bushel in late October. A poor harvest in other major exports countries prompted loads of shipments from the EU to fill the gap, momentarily raising the supply. Still, the overall picture continued with tight supplies as drought conditions in the US and other suppliers could be harmful to the crops. Weather forecast for the next three months in the regions that recently planted the Hard red winter wheat, like Kansas, point to drought in a moment that the seeds require moist soil to get established before the winter. In addition, news on dry weather affecting the condition of crops in Russia, Argentina, and Ukraine put more weight on the perception that the supply will take longer to match the demand. The wheat market has been struggling this season with higher export demand as the stocks are expected to decline in major exporting zones.
Historically, Wheat reached an all time high of 1334.50 in February of 2008. Wheat - data, forecasts, historical chart - was last updated on October of 2021.
Wheat is expected to trade at 749.01 USd/BU by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 825.59 in 12 months time.