Wheat Futures Prices Fall to 10-Year Low08/29/2016
Wheat futures traded in Chicago dropped to their lowest prices in nearly a decade on Friday, pressured by ample supplies.
Corn and soybeans also dipped, ahead of national production estimates due after the close from the Pro Farmer crop tour.
The Chicago Board of Trade most-active December wheat dropped 15 cents, or 3.5 per cent, to $4.08 3/4 a bushel at 11:07 a.m. CDT (1607 GMT). The September contract dipped as low as $3.85 1/4 a bushel, the lowest nearby price since 2006.
Technical selling and grain handlers’ efforts to move U.S. winter wheat supplies to buyers ahead of the corn harvest pressured wheat prices, said Roy Huckabay, executive vice-president of Linn & Associates, a Chicago brokerage.
Wheat was on track for its biggest weekly decline in two years.
Global supplies are abundant as well. The International Grains Council on Thursday raised its forecast for world wheat production in the 2016-17 season to a record high.
Traders are keeping an eye on an import tender from Egypt, the world’s top importer. Egypt’s General Authority for Supply Commodities set a tender on Thursday to buy wheat for shipment from Sept. 26 to Oct. 5.
December corn shed 5 1/4 cents, or 1.6 per cent, to $3.26 3/4 a bushel, putting it on course for its biggest weekly decline since late June.
November soybeans shed 11 cents, or 1.1 per cent, to $9.64-1/2 a bushel, headed for their largest weekly loss in five weeks.
“We are going to see a reasonably big corn crop in the U.S. and what is looking like as big a wheat crop,” said Brett Cooper, senior manager for markets at FCStone Australia.
“A big soybean crop will put pressure on prices but nothing has changed the demand story. Demand has been strong and it is hard to see demand dropping off as prices fall,” he added.
Results were mixed on Thursday, the final day of the closely watched Pro Farmer crop tour across the U.S. Midwest. Corn yields and soy pod counts were higher than last year in Iowa, but lower in Minnesota, scouts found.