Investing.com – Wheat futures were down for a second day on Monday, as fears over a possible U.S. sovereign debt default prompted investors to shun riskier assets, while expectations for higher Russian wheat exports also weighed.
Chicago Mercantile Exchange, wheat futures for September delivery traded at USD6.8475 a bushel during European morning trade, tumbling 1.24%.
It earlier fell as much as 2% to trade at a daily low of USD6.8100 a bushel.
With time running out, talks between Democrats and Republicans from the U.S. Congress broke down over the weekend, prompting White House Chief of Staff Bill Daley to warn that there would be a "few stressful days" ahead for financial markets.
The USD14.3 trillion debt ceiling needs to be raised by August 2 or the government is at risk of defaulting on its obligations.
Rating agency Standard & Poor's last week reiterated that there was a 50-50 chance the U.S. AAA credit rating could be cut within three months if a deal isn’t accompanied by a “credible solution” on the debt burden.
Meanwhile, Russia’s Ministry of Agriculture said Friday that it lifted its forecast for Russian wheat exports for the 2011-12 marketing season by 1 million metric tons to a total of 18 million tons.
The forecast comes a week after Deputy Prime Minister Viktor Zubkov, who is responsible for the country's agricultural sector, said Russia would produce 90 million tons of wheat, up from a previous estimate of 85 million tons and higher than the 61 million harvested a year earlier.
Russia, once the world’s second largest wheat exporter, introduced a ban on grain exports last August after the worst drought in at least half a century wiped out 37% of its wheat crops.
Increased wheat exports from Russia could weigh on demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Elsewhere, corn for September delivery sank 1.45% to trade at USD6.8013 a bushel, while soybeans for September delivery dropped 0.86% to trade at USD13.6950 a bushel during European morning trade.
Later in the day, the U.S. Department of Agriculture was to publish its weekly crop progress report, which would provide an indication on how U.S. crops fared during the recent heat wave.
Chicago Mercantile Exchange, wheat futures for September delivery traded at USD6.8475 a bushel during European morning trade, tumbling 1.24%.
It earlier fell as much as 2% to trade at a daily low of USD6.8100 a bushel.
With time running out, talks between Democrats and Republicans from the U.S. Congress broke down over the weekend, prompting White House Chief of Staff Bill Daley to warn that there would be a "few stressful days" ahead for financial markets.
The USD14.3 trillion debt ceiling needs to be raised by August 2 or the government is at risk of defaulting on its obligations.
Rating agency Standard & Poor's last week reiterated that there was a 50-50 chance the U.S. AAA credit rating could be cut within three months if a deal isn’t accompanied by a “credible solution” on the debt burden.
Meanwhile, Russia’s Ministry of Agriculture said Friday that it lifted its forecast for Russian wheat exports for the 2011-12 marketing season by 1 million metric tons to a total of 18 million tons.
The forecast comes a week after Deputy Prime Minister Viktor Zubkov, who is responsible for the country's agricultural sector, said Russia would produce 90 million tons of wheat, up from a previous estimate of 85 million tons and higher than the 61 million harvested a year earlier.
Russia, once the world’s second largest wheat exporter, introduced a ban on grain exports last August after the worst drought in at least half a century wiped out 37% of its wheat crops.
Increased wheat exports from Russia could weigh on demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Elsewhere, corn for September delivery sank 1.45% to trade at USD6.8013 a bushel, while soybeans for September delivery dropped 0.86% to trade at USD13.6950 a bushel during European morning trade.
Later in the day, the U.S. Department of Agriculture was to publish its weekly crop progress report, which would provide an indication on how U.S. crops fared during the recent heat wave.