The dominant feature for the agricultural markets this month was northern hemisphere production. Particularly important were the U.S. corn and soybean crops and the Russian wheat crop. All three crops started the month with modest expectations and some areas of concern, but by month’s end all crop estimates had increased. In the case of Russian wheat, they had increased significantly.
In early July concerns about the U.S. spring wheat crop had dominated world wheat markets and the $2.50/bushel rally in Minneapolis futures had pulled all classes of wheat $15 - $50/metric ton (MT) higher. By early August harvest in the northern U.S. was underway and yields were better than expected. Prices quickly returned to their pre-July levels and by month’s end most major classes of wheat had made new lows for the year.