Wheat Declines the Most in a Week as Canada Forecasts Higher Production
Wheat fell the most in a week in Chicago after Canada, the world’s fourth-biggest exporter of the grain, predicted a 3.9 percent gain in production this year. Corn and soybeans dropped for a second day.
Canada’s wheat harvest will increase to 24.1 million metric tons, Statistics Canada said yesterday. That’s up from an Aug. 11 U.S. Department of Agriculture estimate of 21.5 million tons. The Canadian crop should make up for lost spring-wheat output in the U.S., which may fall 17 percent, said Dave Norris, a grain broker in Harrogate, England.
“StatsCanada reckons that increased wheat production there alone, compared with the latest USDA figures, will make up for America’s spring-wheat shortfall,” Norris said today in a report.
Wheat for December delivery dropped 5 cents, or 0.6 percent, to $7.7225 a bushel by 1:15 p.m. London time on the Chicago Board of Trade. Prices slid as much as 2 percent, the most since Aug. 18, after surging 6.1 percent in three sessions through Aug. 23 on concern hot weather in the U.S. may curb the harvest in the world’s largest exporter.
Milling wheat for November delivery traded on NYSE Liffe in Paris was little changed at 207 euros ($299) a ton.
Corn for December delivery dropped 4 cents, or 0.5 percent, to $7.39 a bushel in Chicago. Soybeans for November delivery lost 4.5 cents, or 0.3 percent, to $13.89 a bushel.
Russia’s grain crop will come to 87 million to 88 million tons, researcher SovEcon, which previously predicted a harvest of 87 million to 90 million tons, said today. The country’s grain exports from July 1 to Aug. 22 totaled 4.8 million tons, food-safety watchdog Rosselkhoznadzor said in an e-mailed statement.
Germany’s grain harvest will fall 12 percent to 39 million tons on “terrible” weather, the DBV German Farmers Association said at a press conference today. The wheat crop will drop 12 percent to 21 million tons, it predicted. The country is the second-biggest European Union wheat producer after France.
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