Wheat futures dip after Russia resumes exports

Published 07/07/2011, 06:23 AM
Investing.com – Wheat futures were down for a second day on Thursday, as Russia was set to return to the export market, while favorable weather in the U.S. eased concerns over deteriorating crop conditions.

On the Chicago Mercantile Exchange, wheat futures for September delivery traded at USD6.1988 a bushel during European morning trade, slumping 1%. 

It earlier fell as much as 1.1% to hit a daily low of USD6.1925 a bushel.

Egypt’s General Authority for Supply Commodities, the state’s main wheat buyer, set a tender to buy wheat from global suppliers on Wednesday, including Russia in the mix for the first time since the country let a ban on exports expire on July 1.

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.

Moscow-based industry group SovEcon said on Wednesday that exports of all grains from Russia’s southern Black Sea port of Novorossiysk will probably reach more than 600,000 metric tons in July.

Agribusiness financial service provider Rabobank said in a report earlier that, “U.S. wheat is facing stiff competition from Russian suppliers”, adding that Russian wheat was expected to be “priced competitively with U.S. and French wheat”.

Meanwhile, the U.S. National Weather Service said that it expected warm temperatures and some rainfall across major spring-wheat growing areas in the U.S. Great Plains in the ten days from July 6, aiding spring-wheat crops and potentially boosting the quality of the harvest.

The U.S. Department of Agriculture said in its weekly crop progress report published Tuesday that only 13% of the U.S. spring-wheat crop was rated in ‘excellent’ condition as of July 3, compared to 18% in the same week a year earlier.

The U.S. is the world’s biggest exporter of the grain.

Elsewhere, corn for September delivery was relatively unchanged, dipping 0.02% to trade at USD6.1900 a bushel, while soybeans for August delivery edged 0.15% higher to trade at USD13.2475 a bushel during European morning trade.

Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.