Wheat Futures Decline Amid Strong Dollar and Improved Weather Conditions
Wheat futures continued to drop in overnight trading, pressured by a strengthening U.S. dollar, which makes American exports less competitive globally. The dollar rose 0.3% overnight, reaching its highest level since late 2023 against a basket of major currencies.
The stronger dollar, buoyed by hawkish comments from Federal Reserve policymakers, has reduced the appeal of dollar-denominated goods, including agricultural products. Federal Reserve Chair Jerome Powell is set to speak in Dallas today, with any remarks on interest rate trajectories likely to cause further dollar volatility.
Wheat prices also fell due to rainfall in parts of the eastern Midwest, where soft red winter wheat is grown. The National Weather Service predicts additional precipitation over the next 6 to 10 days in regions such as eastern Oklahoma, southern Missouri, and Arkansas, which could improve crop conditions.
– Wheat futures for December delivery dropped 3¢ to $5.38 a bushel on the Chicago Board of Trade.
– Kansas City wheat futures declined 2¢ to $5.38¾ a bushel.
– Corn futures fell ¼¢ to $4.26¼ a bushel.
– Soybean futures for January delivery gained 2½¢ to $10.10¼ a bushel. Soymeal decreased $1.40 to $290.20 per short ton, while soy oil added 0.47¢ to 45.65¢ per pound.
Hatchery Egg Placements Increase 1% Year-Over-Year
The U.S. Department of Agriculture (USDA) reported a 1% increase in hatchery egg placements, with 239 million eggs set in incubators during the week ending November 9. Hatchability remained steady at just over 79%.
– Top states: Alabama led with 34.1 million eggs, followed by Georgia (32.8 million) and North Carolina (25.4 million).
– Meat production: About 186 million chicks were placed for meat production last week, a 5% increase from the same week last year.
From January 6 to November 9, approximately 8.51 billion chicks were placed for meat production, a 2% rise year-over-year. Georgia producers placed 27.1 million chicks, followed by Alabama (24.5 million) and Arkansas (21.2 million).
Frost Advisories Issued for Central Oklahoma
The National Weather Service (NWS) has issued frost advisories for parts of central Oklahoma, where overnight temperatures were forecast to dip to around 34°F. Clear skies in central and eastern Oklahoma are expected to bring additional frost development tonight into Friday morning.
In southern Indiana, moderate rainfall this morning may lead to minor flooding, though the precipitation is forecast to subside by this afternoon, according to the NWS.
