Global Wheat Prices Drop Amid Strengthening US Dollar
Grain markets witnessed a significant downturn as various commodities saw a price reduction of approximately 2% on Friday. The Australian dollar weakened by more than 1%, while the US dollar index strengthened, contributing to the downward trend in grain prices.
In the wheat market, Chicago December 2024 wheat prices decreased by 11.25 cents per bushel to 676.75 cents per bushel. Similarly, Kansas December 2024 wheat dropped by 12.5 cents per bushel to 699.5 cents per bushel, and Minneapolis December 2024 wheat fell by 12.5 cents per bushel to 720.25 cents per bushel. The MATIF December 2024 wheat contract in Europe also experienced a decline, down €6 per tonne to €252 per tonne.
Corn and soybeans were not exempt from the downturn. December 2024 corn prices fell by 2.25 cents per bushel to 467.25 cents per bushel, while November 2024 soybeans dropped by 9.25 cents per bushel to 1157.75 cents per bushel. In the oilseeds market, Winnipeg November 2024 canola prices decreased by C$11.20 per tonne to C$649.50 per tonne, and MATIF November 2024 rapeseed declined by €6.50 per tonne to €476.25 per tonne.
Australian grain markets also felt the impact, with ASX January 2025 wheat down A$3.50 per tonne to A$379 per tonne. However, ASX January 2025 barley remained unchanged at A$323.90 per tonne.
The weakening of the Australian dollar to US$0.6581 further accentuated these market shifts, adding pressure on Australian exporters. The strengthened US dollar index made US commodities relatively more expensive on the global market, contributing to the overall price declines.
The Daily Market Wire commentary will resume on Tuesday, providing further insights into the evolving grain market trends.
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