Wheat prices dip amid supply surplus

April 09, 2024 (MLN): Wheat prices extended losses as concerns over adequate supply and soft demand offset escalating hostilities in the Black Sea region, as Bloomberg reported.

Futures in Chicago fell for a second session after rallying to the highest level in more than a month last week.

The condition of the US winter wheat crop is slightly better than expected and vastly improved on last year, according to a progress report from the US Department of Agriculture.

“It’s hard to move away from the fact that large supplies are going to come online mid-year,” said Dennis Voznesenski, associate director of sustainable and agricultural economics at Commonwealth Bank of Australia.

“Lackluster demand is also a constant issue the market is dealing with,” he added.

Wheat futures for May delivery fell 1.1% to $5.5950 a bushel as of 08:58am PST.

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