Wheat prices continued to rise, reaching their highest level in a month, as ongoing bad weather in key export regions stokes fears of disruptions to global supplies. Chicago futures saw a second consecutive day of gains after storms and bushfires swept through U.S. growing regions over the weekend, pushing prices higher on Monday. Weather forecaster Maxar predicts further deterioration in conditions across the U.S. Plains, with prolonged dryness in southern areas exacerbating concerns.
The impact of adverse weather in the U.S. is being compounded by similar challenges in the Black Sea region. A lack of snow cover and severe drought conditions are threatening wheat crops in Ukraine and Russia, according to a report from Futures International LLC. Maxar forecasts worsening dryness in Ukraine and western Russia, heightening concerns about crop yields.
Forecasts predicting drier conditions in the Black Sea’s wheat-growing areas have contributed to the resurgence of risk premiums in wheat prices, according to CRM Agri. Additionally, slowing wheat exports from Russia, one of the world’s top wheat exporters, have further pushed prices upward.
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