Wheat fell for a seventh day to trade near the lowest level in three weeks as improving crop prospects in Europe eased concern that lower output in the U.S., the top exporter, will curb global supply.
The contract for July delivery lost as much as 0.3 percent to $6.8825 a bushel on the Chicago Board of Trade and was at $6.885 by 11:11 a.m. in Singapore. Prices dropped to $6.8775 yesterday, the lowest since April 24. A seventh day of declines matches the longest such streak since Nov. 12.
In France, the biggest European producer, 73 percent of crops were rated good or excellent as of May 5, FranceAgriMer data show. Production in the 28-country European Union may climb to a six-year high of 144.9 million metric tons in the 2014-2015 season, the U.S. Department of Agriculture estimated May 9. The EU is the world’s biggest grower, and the USDA expects the bloc to overtake the U.S. as the top exporter in 2014-2015.
“Wheat is under pressure as northern hemisphere winter wheat crops move through the heading stage and the risk of weather reducing yields diminishes,” Australia & New Zealand Banking Group Ltd. analysts including Paul Deane wrote in a report today. “We view wheat prices still at risk of easing another 2 percent to 3 percent in the near-term, but should find support at $6.70 a bushel levels.”
As European production increases, U.S. output will drop 7.8 percent to 53.4 million tons, the lowest since 2006-2007, according to the USDA. World stockpiles are still set to rise 0.5 percent to 187.4 million tons by June 1, 2015, the USDA predicts.
Corn for July rose 0.1 percent to $4.96 a bushel after declining to $4.95, the lowest since April 22. Soybeans advanced 0.4 percent higher at $14.9225 a bushel.
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