Chicago wheat prices are continuing to lose ground right now. It is likely to be the second straight weekly decline. The US Department of Agriculture (USDA) yesterday forecast unexpectedly high global production, fueling prospects for improved supply around the world.
Corn prices go down after three consecutive sessions with profits, while soybean futures go up for a third session in a row.
"Wheat futures have suffered losses, but not much changes when you look at physical prices in major exporting countries," said a Singapore-based trader.
The USDA yesterday raised its estimate of global ending stocks of wheat by more than expected 2.38 million tons on the back of better production outlook for Australia, Canada and Russia.
This could allay concerns about global food inflation as prices hit a 10-year high. The United Nations Food Administration highlighted wheat in its latest price index due to heavy rainfall in Australia and possible changes in export policies in Russia.
The USDA also increased global ending stocks of corn due to larger crops in Ukraine and the European Union and a smaller crop in China, and reduced global soybean stocks.
Source
Hansa Terminhandel GmbH