Wheat falls on improved yield outlook for US spring harvest
Sunday, 6 September 2009
NEW YORK, Sept. 5 (Bloomberg): Wheat fell to a nine-month low on speculation that the US spring crop will be bigger than forecast, after timely rain and sunshine boosted plant development.
About 75 per cent of spring wheat was in good or excellent condition as of Aug. 30, up from 72 per cent a week earlier, the US Department of Agriculture said in a report. The harvest was 38 per cent complete, lagging behind the five-year average of 79 per cent, USDA data show.
"Spring wheat continues to come in with fabulous yields and high protein, and it has nowhere to go," said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. "We've been selling a little bit and getting competitive, but with the yields we're seeing, we need to sell a lot more."
Wheat futures for December delivery fell 7 cents, or 1.5 per cent, to $4.7175 a bushel on the Chicago Board of Trade. The most-active contract earlier dropped to $4.71, the lowest since Dec. 5, 2008. Futures fell 4.7 per cent this week and 23 per cent this year because of increased production and declining demand.
On the Minneapolis Grain Exchange, spring-wheat futures for December delivery fell 7.25 cents, or 1.4 per cent, to $4.985 a bushel, after earlier touching $4.9625, the lowest since May 22, 2007. The price has dropped for seven straight sessions and has fallen 7.7 per cent this week.
Spring wheat is grown mostly in the US northern Great Plains, which includes North Dakota and Minnesota. The grain is high in protein and is used to make bread and cereals. The USDA is forecasting a spring-wheat crop of 511 million bushels.
Winter varieties, grown mostly in the eastern Midwest and the southern Plains, account for about 70 per cent of all wheat grown in the US Hard-red wheat from the southern Plains is used to make bread, while soft-red from the eastern Midwest is used for cookies and cakes.
Wheat is the fourth-biggest US crop, valued at $16.6 billion in 2008, behind corn, soybeans and hay, government data show. The US is the world's largest wheat exporter.
About 75 per cent of spring wheat was in good or excellent condition as of Aug. 30, up from 72 per cent a week earlier, the US Department of Agriculture said in a report. The harvest was 38 per cent complete, lagging behind the five-year average of 79 per cent, USDA data show.
"Spring wheat continues to come in with fabulous yields and high protein, and it has nowhere to go," said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. "We've been selling a little bit and getting competitive, but with the yields we're seeing, we need to sell a lot more."
Wheat futures for December delivery fell 7 cents, or 1.5 per cent, to $4.7175 a bushel on the Chicago Board of Trade. The most-active contract earlier dropped to $4.71, the lowest since Dec. 5, 2008. Futures fell 4.7 per cent this week and 23 per cent this year because of increased production and declining demand.
On the Minneapolis Grain Exchange, spring-wheat futures for December delivery fell 7.25 cents, or 1.4 per cent, to $4.985 a bushel, after earlier touching $4.9625, the lowest since May 22, 2007. The price has dropped for seven straight sessions and has fallen 7.7 per cent this week.
Spring wheat is grown mostly in the US northern Great Plains, which includes North Dakota and Minnesota. The grain is high in protein and is used to make bread and cereals. The USDA is forecasting a spring-wheat crop of 511 million bushels.
Winter varieties, grown mostly in the eastern Midwest and the southern Plains, account for about 70 per cent of all wheat grown in the US Hard-red wheat from the southern Plains is used to make bread, while soft-red from the eastern Midwest is used for cookies and cakes.
Wheat is the fourth-biggest US crop, valued at $16.6 billion in 2008, behind corn, soybeans and hay, government data show. The US is the world's largest wheat exporter.