CBOT wheat drops 5pc on worries about economy
CHICAGO: Chicago Board of Trade wheat futures fell 5 percent to a 2-1/2 month low as the US Federal Reserves warning about risks to the economy sparked a broad sell-off in commodities.
* The drop in CBOT soft red winter wheat futures was the biggest decline in the market in percentage terms since prices fell 8.8 percent on June 30.
* Hard red winter wheat futures at the Kansas City Board of Trade and MGEX spring wheat futures also were down sharply.
* The benchmark CBOT December contract was trading well below all key technical support levels. CBOT wheat has fallen nearly 18 percent since hitting its summer peak of $7.71-1/2 on Aug. 30.
* CBOT volume was up sharply from earlier this week, with more than 85,000 contracts trading hands. But volumes still lagged the 30-day and 250 day averages.
* Egypt's GASC bought 240,000 tonnes of Russian wheat for Dec. 11-20 shipment.
* US Agriculture Department reported weekly export sales of wheat at 679.500 tonnes, topping forecasts for 400,000 to 550,000 tonnes.
* Winter wheat growers in US Plains nervous as they seed 2010 crop amid devastating drought.
Copyright Reuters, 2011
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