Wheat Falls Amid Record Global Supply; Soybeans DeclineJeff Wilson
Wheat futures fell from a two-week high on speculation that buyers will pause as farmers reap a record global harvest this year. Corn and soybeans declined with crop conditions improving in South America.
World wheat output in the 12 months that began June 1 will rise 7.8 percent 706.38 million metric tons, according to the U.S. Department of Agriculture. Today, India invited bids for 155,000 tons of exports.
“Global supplies are adequate,” Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Export business is sluggish, and the price probably needs to move lower to find new buying interest.”
Wheat futures for March delivery fell 0.6 percent to close at $6.555 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $6.63, the highest since Nov. 5, after demand increased in Egypt, the biggest importer. The grain has dropped 16 percent this year.
Corn futures for March delivery declined 0.2 percent to $4.2525 a bushel, and soybean futures for January dropped 0.2 percent to $12.7375 a bushel.
Dry weather in the next five days will accelerate planting across Argentina before rains arrive on Nov. 25, according to World Weather Inc. in Overland Park, Kansas. Timely rain mixed with warm, sunny weather in the next two weeks will boost plant development in Brazil, the forecaster said in a report.
“The weather in South America is near perfect,” Schultz said. “Without a more-adverse weather pattern, the corn and soybean markets are going to remain under pressure from expectations for big crops.”
Brazil is the leading exporter of corn and soybeans, followed by the U.S. Argentina is the biggest shipper of soy-based animal feed and cooking oil.