Wheat for July delivery dropped 0,4% to $6,9075 a bushel on the Chicago Board of Trade, following a 5.5% slump in prices for the month. Prices are pressured by weather forecasts favorable for wheat cropping. Rains in central and eastern areas of the U.S. and in western Australia will be recharging soil moisture, which will lead to higher supply. Last weeks rains in the Black Sea region improved wheat conditions and Ukraine is expected to contribute to the global wheat supply with a 19,3 million metric tons output, up 22% compared to last years 15.8 million metric tons production.
“The rains are beneficial for the wheat crops, which explains the price drop for this product, even more so as planting conditions in Australia look favorable,” Paris-based farm adviser Agritel wrote in a market comment today.
“Ukraine is on course for a wheat crop in the region of 19 million to 21 million tons and aggressive FSU new-crop offers continue to weigh on European offers,” Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone Inc. in Dublin, wrote.
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