BEIJING: China's most-active strong-gluten wheat futures for delivery in May sank more than 7 percent, their biggest-ever one-day drop, on Tuesday as investors continued to unwind bullish bets ahead of the contract's expiry.
The week-long rout pushed prices in the niche futures market on the Zhengzhou Commodity Exchange to 2,716 yuan ($394) per tonne, their lowest since mid-November and reversing the market's months-long rally fuelled by fears about a poor crop
Last week, data showed China, one of the world's top milling market, imported more than 500,000 tonnes of wheat in March, its highest since at least January 2016
Falling prices would provide some relief to mills which have been forced to shut or cut operations since last year as government buying and bad weather tightened supplies
The selling came even as US prices have rallied
Open interest in May has plunged ahead of expiration on May 15 to 1,878 lots from just under 18,000 two months ago.
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