Wheat Drops to 4-Year Low Amid Low Demand

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Wheat Drops to 4-Year Low amid Low Demand

Wheat continued with declines to a low of four years in Paris and Chicago amid concerns about decreasing demand in the US and prospects of a record global crop harvest.

Global harvests are estimated to be a record 719. 95 million metric tons of wheat, which will increase global stockpiles to a 3-year high. The US Department estimated on September 11 that exporters sold 314,532 tons of what for the week that ended September 11, lower that the amount sold a week earlier.

Bloomberg quotes Gleadell Agriculture Ltd. managing director, David Shephard as having said, “Wheat prices have fallen to a fresh four-year low on weak US export prospects and rising global supplies. The bearish stocks outlook in last week’s USDA report has followed through this week as traders digest the glut of coarse grains available in the 2014-15 season.”

December delivery wheat futures dropped 1% to $4.835 per bushel in Chicago, the lowest since Jul. 2010. This week, the grain is expected to decline 3.8%.

November delivery milling wheat in Paris dropped 2.2% to 155.50 euros per ton on Euronext, the lowest since Jul. 2010.

November delivery soybeans dropped 0.6% to $9.655 per bushel after reaching $9.64, the lowest price since Jul. 2010. Prices are expected to drop for the sixth week, longest decline in four years. December delivery corn dropped 0.4% to $3.37 per bushel, near the $3.3575 4-year low.

The Wall Street Journal quoted private forecasters as having said “The drier trends in the next 10 days limit concerns and aid maturing corn/soy,” in a Friday report from Midwest Market Solutions Inc.

On Friday, soybean prices were pushed to a low as by early harvest reports that showed record yields for the oilseeds. US, the biggest producer of soybeans and corn could harvest record amounts of the crops at 3.913 billion bushels and 14.395 billion bushels respectively as reported by the USDA on September 11.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com