Wheat Falls to 14-Week Low on Global Supply Outlook; Corn Drops

June 10, 2014 07:18 AM
 
Nice SD wheat

Wheat futures fell to a 14-week low on speculation that a U.S. government report tomorrow will show world production outpacing consumption. Corn dropped to the cheapest since February, while soybeans gained.

Global wheat stockpiles before the 2015 harvest may rise to 188.08 million metric tons, the highest in three years and more than the U.S. Department of Agriculture forecast last month, according to a Bloomberg survey of analysts. The dollar has gained 1.3 percent against a basket of 10 currencies since May 6, when futures reached a 14-month high.

"Plentiful world supplies means more competition for U.S. wheat," Brian Grete, the editor of Professional Farmers of America newsletter in Cedar Falls, Iowa, said in a telephone interview. "Robust world crops and a rising dollar means U.S. wheat is still uncompetitive on the world market."

Wheat futures for July delivery fell 2 percent to $6.0025 a bushel at 11:27 a.m. on the Chicago Board of Trade. Earlier, the price touched $5.9925, the lowest for a most-active contract since Feb. 28.

The grain has slumped 18 percent from the 14-month closing high of $7.39 on May 6. A 20 percent drop heralds a bear market. The U.S. is the world’s top exporter.

This year, the European Union will produce 145.9 million metric tons, the most since 2008, according to analysts surveyed by Bloomberg News. Brazil will harvest 7.37 million tons, 33 percent more than a year earlier, the government said today.

Corn futures for July delivery fell 1.2 percent to $4.4575 a bushel in Chicago. Earlier, the price touched $4.45, the lowest since Feb. 14.

Soybean futures for November delivery gained 0.4 percent to $12.295 a bushel.

 

Back to news

Comments

 

Rate this News Article:

Spell Check

No comments have been posted to this News Article

Markets

Market Data provided by Barchart.com
brought-by

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

 
Close