Chicago wheat futures fell 2% on Monday, driven by good prospects for both harvest size and progress in the United States and the Black Sea region, including Russia, according to European traders.
The Chicago Board of Trade’s most active wheat contract (Wv1) was down 2.0% at $5.39-3/4 a bushel as of 0839 GMT.
Traders cited a new forecast of a large U.S. crop on Friday by the U.S. Department of Agriculture (USDA) as a key factor behind the decline. They also expect a positive report on the U.S. wheat harvest progress from the USDA, due later on Monday, to further weigh on prices.
The improved outlook for wheat production in the U.S. and the Black Sea region, a major global exporter, has reduced concerns about global supply tightness and put downward pressure on wheat futures.
The Black Sea region, which includes Russia, Ukraine, and other countries, has been a major focus of attention due to the ongoing conflict in Ukraine and its impact on grain exports. However, the latest indications suggest that wheat crops in the region may be faring better than previously expected.
Overall, the combination of a potentially large U.S. harvest and positive developments in the Black Sea region has led to a more optimistic outlook for global wheat supplies, causing Chicago wheat futures to retreat by 2% on Monday.