Wheat heads for fifth weekly fall as traders hope for demand
WEAT•Chicago wheat futures were down 3.4% for the week and headed for a fifth consecutive weekly decline, while traders watched Saudi Arabia’s tender for 535,000 metric tons. Corn and soybean futures also fell.
1. Grain futures decline
The most-traded Chicago wheat contract fell 0.5% to $6.79-1/4 a bushel on Friday and was down 3.4% for the week. Corn slipped 0.7% to $4.99 a bushel, down 5.5% for the week, while soybeans lost 0.6% to $12.76-3/4 a bushel and were down 3.2%.
2. Demand and export risks
Saudi Arabia announced it is seeking to buy 535,000 metric tons of wheat for November and December shipment. Traders viewed the tender as a sign that falling prices could be reviving demand; Saudi Arabia had cancelled its previous tender on September 7 because of high prices. A stronger U.S. dollar and the ongoing U.S. harvest also pressured grain prices.
3. Black Sea outlook
Russia and Ukraine are seeking to ramp up exports through alternate routes, analyst Dennis Voznesenski said. Consultancy Sovecon cut its Russian wheat export forecast for the season by 4.7 million tons to 36.7 million tons, saying normal port operations in the Azov-Black Sea region may not resume before 2027. Voznesenski said a continued Black Sea closure would push prices higher.
