An abundant wheat crop and good weather, combined with today's collapse of equity markets, has pressured wheat, sending it to a new low for 2009.
Intraday
Daily
from Dow Jones newswires:
CHICAGO (Dow Jones)--U.S. wheat futures hit new contract lows Friday as a
firm dollar, falling corn futures and bearishness about hefty world supplies
pressured prices.
Chicago Board of Trade September wheat ended down 10 3/4 cents at $4.89 1/2
per bushel, down 38 3/4 cents on the week. Kansas City Board of Trade September
wheat closed down 8 3/4 cents at $5.25 1/4, and Minneapolis Grain Exchange
September wheat lost 6 cents to $5.73 1/4.
CBOT September wheat set a new contract low of $4.88 a bushel, below its
pervious open outcry low of $4.99, set Thursday. Commodity funds sold an
estimated 5,000 contracts.
Strength in the U.S. dollar "certainly kind of poisoned the atmosphere for
finding a reason to rally the grains," said Dave Marshall, an independent
marketing adviser and commodities broker. A firm dollar makes U.S. wheat less
competitive for export business on the world market.
Lackluster export demand continued to hang over the market as the demand
front was quiet, traders said. Egypt passed over the U.S. on Thursday in a
tender and bought wheat from France and Russia.
"The perception is just that there's plenty of wheat around," Marshall said.
The markets will likely consolidate early next week ahead of U.S. Department
of Agriculture crop reports due at 8:30 a.m. EDT Wednesday. The reports will
include fresh estimates on U.S. wheat production and world supply and demand.
