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U.S. wheat falls from 1-month high after Russia bans U.S. food imports

Published 08/07/2014, 05:45 AM
U.S. wheat declines after Russia bans U.S. food imports
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Investing.com - U.S. wheat futures fell from a one-month high on Thursday, after Russia announced that it will ban all food imports from the U.S., in a sweeping response to Western sanctions imposed over its support for rebels in Ukraine.

The ban is valid from August 7 and will last for one year, according to Russian Prime Minister Dmitry Medvedev.

On the Chicago Mercantile Exchange, U.S. wheat for September delivery shed 0.5%, or 2.83 cents, to trade at $5.6438 a bushel during U.S. morning hours. Prices held in a tight range between $5.5913 and $5.6788.

A day earlier, wheat prices rallied to $5.7200 a bushel, the most since July 7, before settling at $5.6800, up 2.81%, or 15.4 cents, as mounting concerns over crop conditions in Europe boosted prices.

However, prices gave back some gains Thursday amid fears that Russian sanctions will dampen demand for U.S. supplies.

Meanwhile, U.S. corn for December delivery declined 0.73%, or 2.6 cents, to trade at $3.7140 a bushel. Corn ended Wednesday’s session up 1.91%, or 7.0 cents, to settle at $3.7420 a bushel as investors returned to the market to seek cheap valuations.

Futures fell to a four-year low of $3.5140 on August 1 as near-ideal crop weather in the U.S. Midwest bolstered expectations for a big harvest this autumn.

Elsewhere on the CBOT, U.S. soybeans for November delivery inched down 0.28%, or 3.0 cents, to trade at $10.7700 a bushel. The November soy contract advanced 1.34%, or 14.2 cents, on Wednesday to end at $10.8000 a bushel.

Prices of the oilseed slumped to a 45-month low of $10.5400 a bushel on August 4 as indications of ample global supplies drove prices lower.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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