Due to the faster-than-expected harvesting progress of U.S. Chicago SRW wheat, Chicago wheat futures fell more than 2% on Monday, the fifth consecutive trading day of decline, marking the longest continuous decline since November last year; In May of this year, affected by adverse weather conditions in Eastern Europe, Chicago wheat futures rose by more than 12% for the month, achieving the largest monthly increase since the outbreak of the Russian-Ukrainian conflict.
Due to the faster-than-expected wheat harvest in the United States, Chicago wheat futures fell more than 2% on Monday, with five consecutive trading days of decline, the longest losing streak since November last year.
In May of this year, due to the adverse weather in Eastern Europe, Chicago wheat futures rose more than 12% in the month, marking the largest monthly increase since the outbreak of the Russia-Ukraine conflict.
Russia and Ukraine are both major grain exporting countries in the world, accounting for nearly one-third of the world's wheat exports. However, in May, which is critical to the wheat harvest, both Russia and Ukraine were hit by extreme weather, and local wheat faced the risk of reduced production.
As June comes, wheat begins to pile up in the southern plains of the United States, and traders are waiting for global buyers to turn to wheat supplies from the United States.
The United States Department of Agriculture said on Monday that winter wheat harvesting in the country had reached 6%, which is higher than the analyst's expected 4% and the five-year average of 3%.
Joe Nussmeier, a broker at Frontier Futures, said on Tuesday that the faster-than-expected wheat harvest in the United States finally cooled the market, but the problem is that there is nowhere to place the harvested wheat, and the demand situation is not optimistic.
As the world's largest wheat importer, Egypt bought 470,000 tons of wheat from Romania and other European suppliers in its latest tender.
The United States used to be the world's largest wheat exporter, but it has now fallen to fourth place. The most widely planted wheat variety in the United States is hard red winter wheat, which accounts for about two-thirds of the total. Winter wheat is usually planted from September to November (in the Northern Hemisphere) and harvested in the summer or early autumn of the following year.
According to the American Wheat Association, hard red winter wheat has excellent quality and is suitable for baking foods such as bread rolls, croissants, and pizza. However, the disadvantage of this wheat is that it is expensive and loses to cheaper Russian wheat in the international market.
Lee Scheufler, a wheat farmer and crop scout in Kansas, said, "We only know that the wheat we grow may not be suitable for price-sensitive consumers."