IKAR in Mass and Industry Media

Chicago Wheat Premium Over Corn Grows to Highest in a Month

Bloomberg

Chicago wheat is trading at the highest premium over corn in a month, as concern about the Russian crop supports prices.

Wheat rose for a third straight day, with lower estimates for the harvest in top exporter Russia bolstering prices. Photographer: Akos Stiller/Bloomberg

Wheat rose for a third straight day, with lower estimates for the harvest in top exporter Russia bolstering prices. IKAR lowered its outlook for Russia’s 2024 crop to 82.2 million tons on Monday, due to adverse weather in the Volga, Urals and Siberia growing regions.

Wheat and corn vie against each other for use in livestock rations when prices are similar, but wheat’s widening premium stands to dent its appeal in animal feed.

“’The futures market is factoring in a perceived risk regarding the volume and quality of the spring wheat crop in Russia.” according to Gabriel Razi, an analyst at Romanian grain market consultancy AgroBrane. “At the same time, the corn market is driven by the pressure generated by the anticipated plentiful corn crop in the US.”

Chicago Wheat Premium Over Corn Grows to Highest in a Month

Corn prices have recovered somewhat in recent weeks after plunging to the lowest since 2020 last month, with US farmers expected to reap a bumper harvest.

“Corn supplies are relatively abundant and are looking for the feed demand.” according to Kpler analyst Ishan Bhanu.

https://bloomberg.com/news/articles/2024-09-11/chicago-wheat-premium-over-corn-grows-to-highest-in-a-month

12.09.24

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