Wheat at $4.97 Trying to Break Through $5

Wheat snapped two days of gains on speculation that increasing world production, together with record U.S. corn and soybean harvests, will boost the global supply of crops used in livestock feed.

The contract for December delivery lost as much as 0.5 percent to $5.0275 a bushel on the Chicago Board of Trade and was at $5.04 at 10:33 a.m. in Singapore. Futures fell to $4.6625 on Sept. 25, the lowest level since June 2010.

Wheat dropped 17 percent this year on expectations that worldwide harvests will reach a record, while corn slumped 18 percent and soybeans tumbled 27 percent as U.S. farmers harvest the biggest crops ever. Increasing global supplies are helping to curb world food prices, with a United Nations index declining for the sixth straight month in September, the longest slide since 2009. The U.S. is the top grower of corn and soybeans, according to the Department of Agriculture.

Bloomberg

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