Hot Commodities: Global Wheat Futures Soar Around 1.5%, Global Cereal Production Trend In Focus

The US Wheat futures stayed supported today as a recovery from one week low stayed in place. The commodity currently trades up 1.48% at $7.26 per bushel. The FAO noted in a latest update last week that persistent drought conditions in several major producing countries have resulted in a 29.3 million tonne cut to FAOs 2021 cereal production forecast since the previous report in July, now pegged at 2 788 million tonnes. Notwithstanding this reduction, global cereal production is still projected to grow by 0.7% (18.7 million tonnes) relative to the outturn in 2020. Among the major cereals, the forecast for world wheat production in 2021 has undergone the largest downward revision and is lowered by 15.2 million tonnes since July to 769.5 million tonnes, 0.7% (5.7 million tonnes) below the previous years outturn. The reduction predominantly reflects the negative impact of prolonged drought conditions on yield prospects in the United States of America (USA), Canada and, to a lesser extent, Kazakhstan, as well as adverse weather in the Russia Federation that increased winter crop losses and lowered yields compared to earlier expectations.

Powered by Commodity Insights

Related Story

Related Tags: