Commodities Buzz: Global Wheat Futures Slide To Three Month Low On Eleavted Supply Hopes

28 Nov 2022 , 12:24 PM

The global wheat futures are extending a downward trend amid hopes of an elevated output and a general sense of corrective action in commodities led by the crude oil prices. The US Wheat futures are currently trading down 1.78% at $7.82 per bushel- testing near three month low. Wheat had gained at the start of the month, spiking above $9 per bushel but fell thereafter. The commodity saw accelerated losses despite mixed cues from the US dollar and mostly steady equities. According to the International Grains Council (IGC), world total grains output is expected to contract by 33mt in 2022/23, to 2,255m (-1%), with smaller maize (-53m) and sorghum (-1m) crops more that outstripping increases for wheat (+10m), barley (+6m), oats (+2m) and other coarse grains (+3m). At 2,272m t, global consumption is forecast 1% lower y/y, marking the first annual contraction since 2015/16, linked primarily to reduced feed and industrial uptake. IGC now sees global Wheat output at 791 mt in 2022-23, up from 781 mt in 2021-22.Powered by Commodity Insights