The wheat price on the CBOT initially continued to climb to 518 US cents per bushel yesterday, though it shed its gains again in the later course of trading and closed unchanged at 509 US cents. The correction is continuing for the time being this morning, though so far the price is holding its own above the $5 mark.
Plentiful rainfall is forecast for the winter wheat growing areas in the U.S. Midwest in the coming days. This should provide the urgently needed soil moisture levels and boost plants as they emerge and continue to grow, states Commerzbank.
Current figures from the US Department of Agriculture (USDA) show just how crucial this rainfall is: according to the data, only 47% of US winter wheat plants were in good or excellent condition as of last Sunday. This falls considerably short of the market's expectation of 55%. The proportion in Oklahoma was even as low as 31%, while the figure in Kansas - the most important growing state - was likewise a very poor 41%.
