Wheat Futures Hit Over 2-Month Low

Wheat futures fell below $5.80 per bushel in late June, reaching their lowest level since April 10, as the advancing US winter wheat harvest reinforced expectations of ample supplies. Hard red winter wheat was 49% harvested, far ahead of 11% a year earlier and the five-year average of 19%, while the soft red winter wheat harvest reached 45%, also outpacing both last year and the five-year average. Crop conditions across other wheat-producing regions also remained broadly favorable. However, losses were limited by slower farmer selling during the Northern Hemisphere harvest and concerns over European wheat production following a recent heatwave. Meanwhile, traders awaited the US Department of Agriculture’s quarterly Grain Stocks report due Tuesday. Traders also monitored the resumption of security talks in the Strait of Hormuz after renewed US-Iran tensions, as the recovery of fertilizer shipments through the strategic waterway could help alleviate concerns over wheat production costs.