Wheat Market Outlook - August 26, 2024

Mercantile expects grain markets to hold steady as Europe has mostly completed harvest. According to Mercantile, disputes in the Middle East look to be escalating as cargo vessels are under attack in the Persian Gulf. Meanwhile, prices will stay low for now while demand is outweighing the farmer rate of retention. Mercantile says Russian exporters remain aggressive as their February to June quota will depend on what they ship from July to December, which, along with increasing crop expectations, is keeping Australian prices under pressure. According to Mercantile, in the long term, the weaker dollar, a likely lower interest rate, and an end to European harvest pressure should be more bullish on cash prices. Mercantile would continue to hold more sales.