Increased supply estimates released by the U.S. Department of Agriculture (USDA) yesterday, June 12 have depressed wheat and corn prices. In its World Agricultural Supply and Demand Estimates (WASDE), the USDA raised its forecasts for global stockpiles of corn and wheat, while leaving the soybean estimate unchanged. As a result, most grains lost ground yesterday and have been falling for a second day running today.
Front-month wheat declined as much as 0.5 percent to $6.7975 a bushel on the Chicago Board of Trade (CBOT) in early trading hours in the U.S., but gained some ground later during the day. As of 08:11 ET, the wheat price for July delivery was $6.8250 a bushel. Wheat futures dropped to a three-week low of $6.7912 a bushel yesterday after the USDA said U.S. wheat reserves at the end of the crop's current marketing year on May 31 would total 659 million bushels, above market expectations of 655 million bushels. The USDA report forecast domestic wheat output this year at 2.08 billion bushels, above analysts' expectations.
...