Wheat ($WHEAT) Commodity Forecast: Up 5.3% Today

What is Wheat?

Wheat is a key commodity in the global market, with its price influenced by various factors such as weather conditions, supply-demand dynamics, and geopolitical events. Today, the wheat market experienced a strong bullish movement.

Why is Wheat going up?

WHEAT commodity is up 5.3% on May 13, 2024 18:01

• Wheat futures surged to a 9-month high of $6.5 per bushel due to concerns over supply disruptions caused by adverse weather conditions in key producing regions like Brazil and Russia.
• Improvements in U.S. winter wheat conditions and cooler temperatures forecasted in Russia helped alleviate some of the supply worries, leading to a slight pullback in prices.
• The upcoming USDA supply-demand report is anticipated to show strong global supply, which could further impact wheat prices in the near term.
• Despite the recent fluctuations, the overall bullish sentiment in the wheat market remains supported by the ongoing supply concerns and the potential impact of weather events on future harvests.

WHEAT Price Chart

WHEAT Technical Analysis

WHEAT News

Wheat Futures Hit 9-Month High

Wheat futures are up to $6.5 per bushel, a 9-month high, as concerns regarding supply disruption due to bad weather has reappeared. Heavy flooding hit Rio Grande do Sul state in Brazil, a large wheat producer in early May and frosts in grain-growing regions in Russia led the country to declare a state of emergency. However, there were improvements in the ratings for U.S. winter wheat conditions, alleviating some of the concerns. Furthermore, the USDA supply-demand report, set to be released on Friday is expected to show strong global supply.

Wheat Hits 38-week High

Wheat increased to a 38-week high of 654.00 USd/Bu. Over the past 4 weeks, Wheat gained 18.52%, and in the last 12 months, it increased 4.25%.

Wheat Futures Rises

Wheat futures were up to $6.4 per bushel as concerns regarding supply disruption due to bad weather has reappeared. Heavy flooding hit Rio Grande do Sul state in Brazil, a large wheat producer. However, there was improvements in the ratings for U.S. winter wheat conditions and forecasted cooler temperatures in Russia, alleviating some of the concerns. The latest WASDE report maintained its previous upgrade to Russian wheat production, pointing to a near-record-high of 91.5 million tons this year, which lifts available wheat for export to an all-time high of 51 million tons, by far the largest in the world. Additionally, the report upwardly revised supply for the European Union, Moldova, and Pakistan.

Wheat is down by 5%

Wheat decreased 5% to 610.64 USd/Bu

Wheat Falls Further

Wheat futures fell to $6.1 per bushel from a 9-month high of $6.5 on May 6th as rain was forecasted in Russia and U.S grain belts. Concerns regarding supply disruption have eased due to improvements in the ratings for U.S. winter wheat conditions and forecasted cooler temperatures in Russia, alleviating concerns from last week's weather worries. The latest WASDE report maintained its previous upgrade to Russian wheat production, pointing to a near-record-high of 91.5 million tons this year, which lifts available wheat for export to an all-time high of 51 million tons, by far the largest in the world. Additionally, the report upwardly revised supply for the European Union, Moldova, and Pakistan.

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Wheat Price History

21.01.2024 - WHEAT Commodity was up 5.0%

• Wheat prices surged due to a strong bullish movement, despite recent declines to near 3-month lows.
• The market was influenced by ample global supplies, particularly from key players like Russia, which is expected to produce record-high levels of wheat for export.
• Upwardly revised forecasts of global wheat production, driven by increased output in selected Middle Eastern countries, contributed to easing foreign demand and further weighed on prices.
• Lower asking prices from US and European farms, in response to the oversupply and reduced demand, indicate a bearish sentiment in the wheat market despite the temporary bullish movement.

13.04.2024 - WHEAT Commodity was up 5.3%

• Wheat futures surged to a 9-month high of $6.5 per bushel due to concerns over supply disruptions caused by adverse weather conditions in key producing regions like Brazil and Russia.
• Improvements in U.S. winter wheat conditions and cooler temperatures forecasted in Russia helped alleviate some of the supply worries, leading to a slight pullback in prices.
• The upcoming USDA supply-demand report is anticipated to show strong global supply, which could further impact wheat prices in the near term.
• Despite the recent fluctuations, the overall bullish sentiment in the wheat market remains supported by the ongoing supply concerns and the potential impact of weather events on future harvests.

09.04.2024 - WHEAT Commodity was up 5.4%

• Wheat futures surged as concerns over supply disruption due to bad weather in key producing regions like Brazil led to an increase in prices.
• Improved ratings for U.S. winter wheat conditions and cooler temperatures in Russia helped alleviate some worries about supply shortages.
• The latest WASDE report's upward revision of Russian wheat production and increased supply for the European Union, Moldova, and Pakistan contributed to the bullish sentiment in the market.
• Despite profit-taking and some easing of concerns, the overall bullish trend in wheat prices was supported by ongoing global supply challenges and weather-related uncertainties.

06.02.2024 - WHEAT Commodity was down 5.2%

• Wheat prices hit multi-month lows due to various factors impacting supply and demand dynamics in the market.
• Increased Russian and Ukrainian exports, along with abundant global stocks and the prospect of another bumper Russian crop, weighed heavily on wheat prices.
• Global wheat production for 2023/24 has seen a slight increase, primarily driven by higher outputs in specific regions, offsetting declines in others.
• The decrease in global wheat ending stocks for 2023/24, reaching the lowest level in 8 years, indicates a shift in market dynamics towards increased consumption and reduced surplus.

06.04.2024 - WHEAT Commodity was up 5.1%

• Wheat futures surged as concerns over supply constraints eased due to favorable weather conditions in major producing regions.
• Reports of improved crop outlooks in the US and Russia, along with increased supply forecasts for key exporting countries, contributed to the bullish sentiment.
• The market reacted positively to the news of ample supply and improved production prospects, driving wheat prices higher despite earlier worries of drought conditions impacting output.

03.04.2024 - WHEAT Commodity was up 5.5%

• The price surge in the wheat market is due to supply worries from key producers like southern Russia and the U.S. Plains. Dry weather conditions have raised concerns about crop yields, prompting investors to cover short positions in wheat.
• The European Commission's reduced forecast for the EU's main wheat crop has added to these supply concerns and boosted wheat prices.
• Despite initial concerns about poor crops being alleviated by favorable weather and higher production forecasts, the ongoing dry spell in crucial growing areas and lowered crop estimates have outweighed these positive factors, propelling wheat prices upwards.
• The bullish movement in the wheat market highlights the delicate balance between supply and demand dynamics, with current supply worries leading to higher prices.

29.08.2023 - WHEAT Commodity was down 5.0%

• The bearish movement in the wheat market today can be attributed to the following factors:
• 1. Hiccups in Russia's harvest: The news article mentions that fuel shortages in Russia's southern breadbasket have hampered economic activity, leading to the suspension of selected fuel exports. This has raised concerns about the supply of wheat from Russia, the world's top exporter. The potential disruption in supply expectations has likely contributed to the bearish movement in wheat prices.
• 2. Lower global consumption forecasts: The article highlights that global consumption forecasts for wheat have been revised lower, particularly in Southeast Asia, Northern Africa, and Canada. This indicates a decrease in demand for wheat, which can put downward pressure on prices.
• 3. Temporary corridor for grain exports in Ukraine: The news of ships successfully arriving in Ukraine through a temporary corridor has lifted hopes for the country's ability to sell grain in the foreign market. This suggests increased competition in the wheat market, potentially leading to lower prices.
• Overall, the bearish movement in the wheat market today can be attributed to concerns about supply from Russia, lower global consumption forecasts, and increased competition from Ukraine.

23.03.2024 - WHEAT Commodity was up 5.4%

• Wheat futures surged to a near-2-month high due to concerns over dry weather in the US Wheat Belt and reduced output expectations in Australia, leading to a decrease in supply forecasts and pushing prices higher.
• Despite strong production from the Black Sea region and ample supply globally, the market saw a rise to a 7-week high as reports of record-high exports from Russia and other key growers created a bullish sentiment.
• The commodity approached an over 3-year low recently as US farms faced challenges in pricing competitively against the influx of foreign supply, even though optimistic supply forecasts for major wheat-producing regions were maintained.
• Wheat also hit a 4-week low, reflecting a downward trend in prices over the past month, driven by concerns over excess supply and pricing competition in the global market, despite positive export projections for leading wheat-producing countries.

13.09.2023 - WHEAT Commodity was up 5.7%

• The bullish movement in wheat today can be attributed to the following factors:
• 1. Tighter supply predictions: Lower supply forecasts for U.S. wheat due to stable or decreased acreage and farmers' disenchantment with the crop after years of drought have led to expectations of reduced U.S. wheat production. This, coupled with the potential disruption of wheat flow from Russia due to poor crop weather or war in Ukraine, has tightened global supplies and increased the vulnerability to shortages.
• 2. Rebound from three-year low: Wheat futures have rebounded from the three-year low touched on September 29th, as markets pared expectations of soaring supply levels. Dryer weather conditions in Argentina and Australia, which are key exporters, are likely to hamper their harvests, providing support to wheat prices.
• 3. Bearish pressure from global consumption forecasts: Despite the rebound, wheat futures remain near levels 28% lower year-to-date. This is due to bearish pressure from revised lower global consumption forecasts, particularly in Southeast Asia, Northern Africa, and Canada, where demand has decreased.
• 4. News of ships successfully arriving in Ukraine: The news of ships successfully arriving in Ukraine through a temporary corridor has lifted hopes that the country may be able to sell grain in the foreign market, which could potentially impact global wheat trade dynamics.
• Overall, the bullish movement in wheat today can be attributed to tighter supply predictions, a rebound from a three-year low, bearish pressure from global consumption forecasts, and positive developments in Ukraine's grain trade.