Reuters – An expected increase in Russia’s wheat crop that will compete with U.S. exports, already hampered by a strong U.S. dollar, is causing Chicago wheat futures to fall, according to traders.
Russian consultancy IKAR raised its forecast of Russia’s 2022 wheat crop by two million tonnes, noting the world’s largest wheat exporter will have 47.5 million tonnes available for shipment in the 2022-23 marketing year.
“We’re seeing bigger and bigger production out of Russia,” said Ed Duggan, senior risk management specialist at Top Third Ag Marketing. “What’s going to make our commodities attractive on a world market? Not with a high dollar.”
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Equities and crude oil fell, while the dollar firmed ahead of central bank meetings in the United States and elsewhere that could see borrowing costs rise globally. Continued Ukrainian grain export shipments into world markets also weighed on the market.
Some 165 ships with 3.7 million tonnes of agricultural products have left Ukraine in a safe shipping channel. Another ship chartered by the United Nations World Food Programme left Ukraine with around 30,000 tonnes of wheat for Ethiopia.
