US wheat price under pressure

The wheat price was driven up last week by a poor assessment of plant quality due to excessively dry conditions, now an improved rating is putting pressure on prices. 

On Monday of last week, the US Department of Agriculture (USDA) had announced in the year's first nation-wide crop quality assessment that 47% of winter wheat plants had been rated as being in good or excellent condition. The figure last year had been a full 59%. 

Following rainfall in a number of growing areas in recent days, the proportion has now been increased to 49%, which was enough to drive the wheat price down by 2.7% yesterday. The wheat price in Paris also fell slightly, it is now trading at below €180 per ton again, notes Commerzbank.