Wheat Drops to 3-Month Low as EU Boosts Supply OutlookJeff Wilson and Whitney McFerron
Wheat fell to a three-month low on expectations that increased production in the European Union will bolster global inventories. Rice capped the longest slump in 12 years.
The 28-nation EU may harvest the most wheat since 2008, according analysts surveyed by Bloomberg News. Global production may be 702.7 million metric tons in the 2014-15 season, bigger than a May forecast of 701.7 million, the United Nations said today. Prices have tumbled 19 percent from a 14-month high in May, when violent conflicts between Russia and Ukraine sparked concern that Black Sea exports would be disrupted.
“Everyone is looking at bigger world crops,” said Roy Huckabay, an executive vice president for Linn Group in Chicago, said in a telephone interview. “Export competition will be intense.”
Wheat futures for delivery in July declined 1.4 percent to close at $6.0575 a bushel at 1:15 p.m. on the Chicago Board of Trade, after touching $6.05, the lowest for a most-active contract since Feb. 28.
Global stockpiles before the 2015 harvest may rise to 188.08 million tons, the highest in three years and above the U.S. Department of Agriculture’s forecast last month, according to a Bloomberg survey.
Rice futures for July delivery dropped 1 percent to $14.08 for 100 pounds, a ninth straight decline and the longest slump since September 2001. Earlier, the price touched $14.07, the lowest for a most-active contract since June 18, 2012.
Corn futures for delivery in July fell 1.6 percent to $4.49 a bushel, after touching $4.485, the lowest since Feb. 14. The grain fell for the sixth straight session, the longest decline since November.
Soybean futures for delivery in November, after the harvest, fell 0.6 percent to $12.105 a bushel.
Crop development will get a boost from as much as 3 inches of rain expected to fall across 90 percent of the main U.S. corn- and soybean-growing areas over the next two weeks, along with limited stress on plants from the heat, Planalytics Inc. said in a report to clients today.