Wheat Steady Around $4.90 on Outlook for Surging Crop Supplies

Wheat dropped toward the lowest level since 2010 on expectations that global production will climb to a record. Corn fell for a second day as farmers in the U.S., the top grower, start to harvest the biggest crop ever.

Wheat for December delivery lost as much as 0.8 percent to $4.955 a bushel on the Chicago Board of Trade and was at $4.9625 by 10:26 a.m. in Singapore. Prices fell to $4.91 on Sept. 16, the lowest for a most-active contract since July 2010.

Futures tumbled 23 percent in the past year as the U.S. Department of Agriculture predicts global production will climb to a record 719.95 million metric tons. Corn dropped 25 percent in the period and soybeans slumped 27 percent as U.S. output reaches all-time highs, according to the USDA. Increasing supplies are helping cut global food prices, with a United Nations’ index slumping to an almost four-year low in August.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.