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Chicago wheat futures fell sharply through June, and an Australian grain analyst argues CBOT no longer reflects global wheat values since the U.S. share of world exports has dropped to about 10-15%. Black Sea suppliers now dominate, and Europe and Canada are larger exporters.
Buyers still use CBOT for hedging.
Explains why CBOT moves may diverge from Black Sea and Australian export prices, so buyers should hedge with local basis in mind rather than rely solely on CBOT.
farmonline.com.auNathan Cattle, Clear Grain ExchangeJun 29, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
