Wheat Futures Decline as Egypt Shuns U.S. Grain, Canadian Supplies Climb
Wheat futures fell the most in two weeks after Egypt bought French shipments in a tender, shunning supplies from the U.S., the world’s biggest exporter. Canada reported that inventories jumped.
Egypt, the largest buyer, purchased 240,000 metric tons for shipment in late October. Stockpiles in Canada, which tied with Russia as last year’s second-biggest exporter, were up 19 percent, according to a government report. Last week, prices surged 6.7 percent on speculation demand for U.S. supplies would increase amid a Russian ban on sales abroad.
“We have a bearish tone after not catching any of the Egypt tender and stocks in Canada being a little higher,” said Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas. “Egypt bought from France, which I don’t think was a big surprise, but if they would have bought from the U.S., prices probably would have been up.”
Wheat futures for December delivery dropped 24.25 cents, or 3.3 percent, to close at $7.11 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since Aug. 25.
On Aug. 6, wheat reached $8.68, the highest level in almost two years, as the most-severe drought in half a century slashed Russian output.
Canadian inventories were 7.8 million tons on July 31, Statistics Canada said today. Traders and analysts expected 6.4 million to 7.4 million, Glenn said.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.
To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus@bloomberg.net.
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