Wheat declined to the lowest in more than a week, extending a weekly loss, as drier weather in parts of the former Soviet Union boosted the production outlook.
The contract for December delivery lost as much as 0.6 percent to $6.865 a bushel on the Chicago Board of Trade, the lowest price since Oct. 18 and was at $6.895 at 3:03 p.m. in Singapore. Futures fell 2.1 percent last week, the first drop since the period ended Sept. 13. Wheat slumped 11 percent this year as global output heads for a record 708.9 million tons, the U.S. Department of Agriculture predicts.
Russian output will rise 43 percent to 54 million tons in 2013-2014, the USDA said in September. Ukraine’s harvest may gain 40 percent, it said. Warmer conditions in the former Soviet Union will improve growth, with potential showers in southern Russia unlikely to be enough to hamper late seeding, Commodity Weather Group LLC said Oct. 25. Rains and cold weather had delayed winter-crop planting in Russia and neighboring Ukraine.
"The Ukraine and Russian situation looks like it’s improved from two weeks ago in terms of plantings of new crop and harvest of old crop," said Michael Pitts, a commodity sales director at National Australia Bank Ltd. in Sydney. "Argentina hasn’t had rain and got some over the weekend, which is a little bearish in the short term."
A widespread and needed rain event is likely to favor most of the Argentine corn and wheat crops later this week, keeping conditions stable, Commodity Weather Group said.
Corn for December delivery lost 0.3 percent to $4.385 a bushel, dropping for a third day. Soybeans for delivery in January traded at $12.89 a bushel after dropping as much as 0.6 percent to $12.855, the lowest for a most-active contract since Oct. 18.