Wheat headed for the biggest weekly drop in more than two months on speculation that an increase in shipments from India, the second-biggest grower, will boost supplies in a year when global output is set to reach a record.
The contract for December delivery was unchanged at $6.965 a bushel on the Chicago Board of Trade by 11:04 a.m. in Singapore after declining 0.2 percent. Futures are set for 1.3 percent weekly loss, the most since Aug. 9 and the first decrease in six weeks. Prices fell 0.7 percent yesterday after India issued a tender to export 120,000 tons of milling wheat from Mundra port in the period from Nov. 24 to Dec. 20.
Wheat slumped 10 percent this year as world production in the season that began June 1 will jump 8.2 percent to 708.9 million metric tons, U.S. Department of Agriculture data show. India’s food ministry will propose to the Cabinet today that it reduce the base price to $260 a ton from $300, according to two government officials directly involved in the talks. The move is aimed at reducing the 2 million tons of wheat in state reserves, they said.
“More talk that India is moving closer to reducing its minimum price hurdle for export wheat weighed on the complex,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
Corn for December delivery was unchanged at $4.4025 a bushel in Chicago. The most-active contract has dropped 37 percent this year on forecasts for a record U.S. harvest. Soybeans for delivery in January traded little changed at $13.0525 a bushel.
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