Wheat fell for a third straight session after Egypt, the world’s largest buyer, shunned U.S. supplies and bought Russian grain.
Egypt today said it purchased 120,000 metric tons from Russia. Iraq yesterday agreed to buy 350,000 tons from the U.S., Romania, Australia, Canada and Russia. The U.S. share was 50,000 tons, said Larry Glenn at Frontier Ag. Prices in Chicago still are up 20 percent this month, touching a seven-month high last week, on concern that a drought will shrink output in Russia.
“We just don’t have wheat priced right,” Glenn said from Quinter, Kansas. “Russia’s still in business. They’re not gone. With all the problems in the Black Sea, they’re still selling wheat. They’re apparently not concerned about it or they wouldn’t be peddling any.”
Wheat futures for September delivery fell 5.25 cents, or 0.9 percent, to $5.77 a bushel on the Chicago Board of Trade, capping a 3.2 percent decline over three sessions.
Egypt bought Russian wheat for $212.45 a ton, said Nomani Nomani, the vice chairman of the country’s General Authority for Supply Commodities. U.S. wheat sold for $224.96 a ton today at export terminals including New Orleans, U.S. Department of Agriculture data show.
The U.S. is the largest exporter of wheat, followed by Canada, Australia and Russia, according to the USDA.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.