Wheat Futures Expected to Dip on Profit-Taking

Wheat futures are expected to open lower on Tuesday at the Chicago Board of Trade due to profit-taking after reaching a two-year high on Friday. The anticipated decline is predicted to be between 4 and 6 cents per bushel.

The recent price surge was largely driven by supply concerns, particularly in the Black Sea region, where ongoing attacks by Russia and Ukraine have raised worries about wheat availability. This has led the Sovecon agriculture consultancy to reduce its Russian wheat export forecast.

However, some factors are limiting the extent of the decline. The U.S. Department of Agriculture reported that 81% of the U.S. winter wheat crop was harvested as of Sunday, while maintaining a good-to-excellent rating for the nation's spring wheat crop at 53%. These developments suggest that supply concerns may be partially offset by robust domestic production.