The most active wheat contract on the Chicago Stock Exchange was down 2.1% at $273.09 a tonne, after earlier falling to a low since August 19.
Traders say the causes of the drop are “a record Russian crop and a grain export channel from Ukraine that increased competition for exports of US supplies.”
“We are concerned about the Ukraine and Russia. They continue to flood the world market with wheat and their prices are much lower than ours.”said Jack Scoville, vice president of Price Futures Group.
The US Department of Agriculture (USDA) said on Thursday that export sales of US wheat amounted to 162,500 tons in the week ending November 24, well below analyst forecastswhich ranged from 300,000 to 725,000 tons.
Wheat prices fell despite lower-than-expected Canadian wheat crop due to dry conditionsreported Statistics Canada.
French crops, however, are in good shape going into winter, with 98% of soft wheat in good to excellent condition in the week to November 28, according to estimates.
For his part, corn fell 1.7% to $251.57 a ton and also faces concerns about weakening export demand, according to Scoville.
Chicago soybeans rose 1% to $412 a tonafter finding technical support just above the low set on Thursday.
Soybeans and commodity markets in general have been supported in recent sessions by signs that China is easing measures against Covid-19 following unusual public protests in the world’s second-largest economy.
Source: Ambito
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