Dollar Strength, Diplomatic Hopes Weigh on Wheat Futures
Wheat futures at the Chicago Board of Trade are expected to open lower on Tuesday due to a strengthening US dollar and renewed diplomatic efforts between Russia and Ukraine. The stronger dollar makes US wheat less competitive in international markets, while hopes for reduced tensions in the conflict weigh on prices.
The war has disrupted grain exports from the Black Sea region, and President Trump's announcement that Russia and Ukraine have agreed to stop strikes on each other's energy facilities raised hopes for a reduction in hostilities. However, both nations have set conditions for accepting an energy truce.
According to the US Department of Agriculture, 8% of the winter wheat crop was planted as of September 13, behind the five-year average pace of 12%. Additionally, 93% of U.S. spring wheat was harvested as of Sunday, slightly ahead of the average pace of 92%.
The CBOT December soft red winter wheat is down 9-1/2 cents at $7.12-1/2 per bushel, while CBOT December hard red winter wheat is down 12-3/4 cents at $7.79-3/4 a bushel. Minneapolis December spring wheat was last 5-1/4 cents lower at $7.31 a bushel.