On Monday, Chicago wheat, corn, and soybean prices experienced a decline, driven by a sudden downturn in global financial markets. Despite a weaker dollar, which typically supports U.S. export sales, the combination of positive U.S. crop prospects and a risk-off sentiment among investors led to falling prices.
Wheat: The most-active wheat contract on the Chicago Board of Trade fell by 2.4%, settling at $5.25¾ per bushel.
Corn: Prices dropped 1.2%, falling below the $4.00 mark to $3.98¼ per bushel.
Soybeans: Soybean prices decreased by 0.5%, reaching $10.21¼ per bushel.
The decline in global stock markets, fueled by recession fears in the U.S., has led investors to retreat from riskier assets, further impacting grain prices. Matt Ammermann, a commodity risk manager at StoneX, noted that the sell-off in financial markets has overshadowed the typically supportive effects of a weaker dollar for U.S. grains.
U.S. weather forecasts indicate a largely dry week ahead, which is favorable for the final stages of the U.S. winter wheat harvest. The U.S. Department of Agriculture (USDA) is expected to release a report on crop progress and conditions later today, with increasing expectations of positive assessments for U.S. corn and soybeans.
In the EU, the wheat harvest is progressing despite disruptions from summer rains, with French farmers reporting that 67% of this year’s soft wheat crop had been harvested by July 29, up from 41% the previous week.