Wheat Drops on Russia, Canada Output; Soybeans Fall; Corn RisesKatia Dmitrieva and Tony C. Dreibus
Wheat fell the most in more than a week on speculation that farmers will boost production in Russia and Canada. Soybeans also declined, and corn rose.
Russia, once the world’s third-largest wheat exporter, may reap as much as 50 million metric tons this year, up from 37.7 million a year earlier, the Agriculture Ministry said March 15. In Canada, production will jump 7.6 percent this year to 27.2 million tons, U.S. Department of Agriculture data show. Planting of spring wheat is set to start in April.
“The former Soviet Union is in pretty reasonable shape at this stage in terms of production,” Jonathon Driedger, a senior market analyst at FarmLink Marketing Solutions, said by telephone from Grunthal, Manitoba. “Farmers are close to spring planting, and the closer we get to those fresh supplies, unless there’s a threat, it’s not shocking that you might see the old-crop prices have the wind come out of their sails.”
Wheat futures for delivery in May dropped 1.4 percent to settle at $7.1275 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest loss since March 6.
Global wheat supplies may rise 4.3 percent from the previous season to 690 million tons as crops in Russia and the former Soviet Union recover from dry weather and farmers expand planting in Europe, the United Nations said March 7.
Soybean futures for delivery in May fell 1.2 percent to $14.095 a bushel in Chicago, retreating for the fifth straight session, the longest slump in a month. Earlier, the oilseed touched $14.0425, the lowest for a most-active contract since Feb. 14. Corn futures for May delivery gained 0.4 percent to $7.20 a bushel on the CBOT.