Wheat futures fell past $5.9 per USD in late August, hovering at levels last seen in November 2020 as strong supply signals coincided with bets of low demand. Russia is set to increase grain shipments in the current marketing year as favorable weather near the late harvest overcame previous concerns of dryness in Siberia and boosted production. The latest WASDE report expects the country to produce 85 million tonnes of wheat this marketing year while exports were revised higher to a record-high of 48 million tonnes, by far the largest in the world. The report also showed that global consumption forecasts were revised lower by 3.4 million tonnes to 796.1 million amid lower feed and residual use in the EU and reduced seed, food, and industrial use by China. Still, a steeper decline was prevented by persistent uncertainty over Ukrainian supplies, as Russian forces struck grain silos and port infrastructure after suspending the deal guaranteeing shipments out of the Black Sea.
Historically, Wheat reached an all time high of 1350 in March of 2022. Wheat - data, forecasts, historical chart - was last updated on August of 2023.
Wheat is expected to trade at 575.39 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 524.97 in 12 months time.