Drought in major producing countries drives wheat to six-year highs in Chicago

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Drought in major producing countries drives wheat to six-year highs in Chicago




Of the 18.5 million tons left by the 19-20 season, about 8 million were sold for export and 6 would remain in the domestic market. There are 4 million tons left to locate in the world and, in price perspectives, the winds are blowing against.


© Provided by Clarín
Of the 18.5 million tons left by the 19-20 season, about 8 million were sold for export and 6 would remain in the domestic market. There are 4 million tons left to locate in the world and, in price perspectives, the winds are blowing against.


Wheat futures reached their highest prices on the Chicago market in the last six years, mainly due to concerns about drought weather conditions in the main growing regions of the crop, unlike corn and soybeans that traded in low.

On the day, the December contract rose US $ 2.57 (1.13%) to US $ 229.74 per ton.

Thus, the price of wheat reached a maximum in almost six years in Chicago due to concerns about the lack of rain and its impact on the world harvest.

Productive areas with drought in Russia and the US make it difficult to plant new winter wheat. In Argentina, the Rosario Stock Exchange adjusted the harvest estimate to 17 million tons for lower yields as a result of the drought and frosts that affected crops and international demand continues to show dynamism and adds additional stimulus to prices.

Meanwhile, corn futures contracts closed the day with slight falls in prices, after having reached the highest values ​​since August 2019.

The December contract depreciated US $ 0.69 (0.43%) to US $ 158.26 per ton.

For its part, soybean futures culminated this Friday with significant falls, after a round of profit taking after the important increases of previous days.

The November contract for the oilseed fell US $ 4.50 (1.15%) to US $ 385.81 per ton, after reaching the highest prices since March 2018.

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