Wheat futures in Chicago were on track for
the lowest close in almost two months after the U.S. Department
of Agriculture predicted record global supplies, topping analyst
expectations. Corn fell and soybeans were flat.
Wheat prices dropped for a fourth day, the worst losing
streak since the middle of April, as the agency said world
inventories will climb to 310.1 million tons, 5.7% higher than
the average analyst forecast of 293.5 million. Rebounding crops
in Russia and Australia will make it harder for American grain
farmers to compete in world markets. That’s even as analysts in
Australia have been cautioning that rains are needed in some
growing areas to ensure a good crop.
Fears over global shortages of staple foods prevalent just
a few weeks ago appear to have dissipated. In March, consumer
panic buying and government moves to limit exports and secure
domestic supplies pushed wheat futures in Chicago to the highest
close in two months. Rice prices in Asia have also retreated
from the seven-year highs reached in early April.
Corn trimmed gains made Tuesday on the back of the USDA’s
outlook for slightly smaller than expected U.S. supplies, while
soybeans held near the highest close this month on continued
optimism over demand from China.
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