Spring wheat futures recovered from Monday’s one-month low as condition ratings for the US crop unexpectedly worsened.
(Bloomberg) — Spring wheat futures recovered from Monday’s one-month low as condition ratings for the US crop unexpectedly worsened.
Futures in Minneapolis climbed as much as 1.3% Tuesday after the US Department of Agriculture downgraded crop conditions, a surprise since an analyst survey predicted steady ratings. The move comes as a lack of rains in parts of North America was stressing crops, and as tensions between Russia and Ukraine in the Black Sea raised risks that grain shipments would be disrupted.
“Precipitation was limited across the state, with the heaviest rainfall concentrated in the northwest,” USDA’s Minnesota field office said of crop conditions. “Some producers were hauling water to pastures.”
Arid growing conditions are also expected to prompt the USDA to slash yield estimates for corn and soybeans in a monthly supply and demand report due Friday.
Still, rains in recent days aided oilseed crops, with August considered the most crucial month for setting yields for North America’s soybean and canola harvests. Canola futures slumped as much as 3% amid the better weather with Canadian trade resuming following a Monday holiday.
–With assistance from Keira Wright.
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