Wheat heads for fifth weekly fall as traders hope for demand
DBA•Chicago wheat futures were on track for a fifth consecutive weekly decline, down 3.4% for the week, as traders looked to Saudi Arabia’s tender for 535,000 metric tons as a sign of renewed demand.
1. Wheat demand hopes
Chicago wheat futures fell on Friday and were down 3.4% for the week. Traders viewed Saudi Arabia’s request to buy 535,000 metric tons for November and December shipment as a possible sign that lower prices were reviving demand; the country cancelled its previous tender on September 7 because of high prices.
2. Other crops decline
Corn futures slipped 0.8% and were down 5.6% for the week after the U.S. Department of Agriculture reported larger-than-expected inventories. Soybeans lost 0.6% and were down 3.3% for the week amid the ongoing U.S. harvest, which is expected to be the biggest on record. A stronger U.S. dollar also pressured crop prices by making U.S. exports less competitive.
3. Supply outlook
Wheat had rallied to $7.76 a bushel in early September, its highest level since February 2023, after Russia and Ukraine disrupted one another’s Black Sea exports, then fell on hopes for a diplomatic solution. Consultancy Sovecon cut its Russian wheat export forecast for the season by 4.7 million tons to 36.7 million tons and said normal port operations in the Azov-Black Sea region would resume no earlier than 2027.
