Wheat Declines Amid Outlook for Increasing Global SupplyRudy Ruitenberg and Jeff Wilson
Wheat fell for a second straight day on the outlook for ample supplies after an industry group raised its production forecast for the fifth month in a row.
The International Grains Council said yesterday that it boosted its estimate for world wheat production by 1 million metric tons to a record 717.6 million. Ending stocks are seen rising to 193 million tons before the 2015 harvest from 185 million tons this year.
“Despite weather events throughout the month, disrupting harvest and planting progress in parts of the U.S., Australia and South America, the likelihood of a record-breaking global grain crop this year remains,” Brenda Mullan, an analyst at the U.K.’s Agriculture & Horticulture Development Board, wrote in a market comment today.
Wheat futures for December delivery fell 0.7 percent to close at $5.325 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices advanced 11 percent this month for the largest gain since March amid speculation that adverse weather would dent crops in Australia and Russia.
U.S. sales of wheat as of Oct. 23 for delivery before May 31 are down 26 percent from a year ago, the Department of Agriculture said yesterday in a report. The dollar rose against a basket of currencies to the highest since June 2010, increasing the costs of supplies for overseas buyers.
“The export lineup is still pretty routine,” Charlie Sernatinger, the global head of grain futures for ED&F Man Capital Markets Inc. in Chicago, said in a telephone interview. “A stronger dollar is pushing the market down.”
Soybean futures for January delivery jumped 1.9 percent to $10.4925 a bushel, capping a fifth straight weekly gain. Prices climbed 15 percent in October, the first monthly gain since April and the biggest since July 2012.
Soybean-meal futures jumped 30 percent in October, the most since July 1974.
Corn futures for December delivery rose 0.7 cent to $3.7675 a bushel. The grain advanced 17 percent in October for the first monthly gain since April and the biggest since July 2012.