Wheat Rises on High Demand as Corn Dips from Strong Harvest
According to a recent Reuters article, U.S. wheat futures continue to rise thanks to global demand while corn slides as United States growers are expected to harvest a record crop.
For the second straight day, and eighth out of eleven sessions, wheat futures have risen on the Chicago Board of Trade, led by strong global demand headed by China. The increased Chinese demand for wheat has been spurred by adverse weather conditions that damaged as much as 16% of the country's crop in May and June, boosting demand for U.S. supplies.
Luke Mathews, commodities strategist at the Commonwealth Bank of Australia, says about crop demand in the article, "We continue to see solid imports of wheat into the Chinese market. The corn market has underperformed wheat in the last couple of weeks."
While wheat demand has continued to climb, the corn market has started going the opposite direction. Corn eased on Monday, nearing a six-week low as the market remained under pressure from record harvesting predictions in the United States.
The China National Grain and Oils Information Center increased its projections for Chinese import demand to 7.5 million metric tons from 6.5 million, according to Reuters. If this number is realized, it would represent the highest figure of imports for China in a decade.
Wheat futures continue to climb, fueled by global demand led by the Chinese market. Corn futures have steadily declined, nearing a six-week low due to the expected record harvest in the United States according to the article.