Front-month wheat futures on the Chicago Board of Trade drifted lower on Friday and posted a weekly decline of more than 5 percent, the biggest since July, pressed by technical selling and dismal export prospects. Additional pressure stemmed from a stronger dollar, which makes US grains less competitive on the world market, and broad-based weakness in commodities including crude oil and copper.
The dollar firmed against major currencies on expectations that the Federal Reserve may raise US interest rates in December. USDA reported export sales of US wheat in the week ended November 5 at 226,700 tonnes, in line with trade expectations for 150,000 to 350,000 tonnes.
Market still digesting USDA's forecast released Tuesday that 2015-16 US wheat exports would hit a 44-year low. Showers expected in the US Midwest and possibly the Plains next week should benefit winter wheat ahead of dormancy. On a bullish note, private analytics firm Informa Economics estimated US winter wheat plantings for harvest in 2016 at 38.7 million acres, which would be down from 39.5 million for 2015 and the smallest since 2010.
Algeria's state grains agency bought around 550,000 tonnes of optional-origin milling wheat, with most expected to come from France, European traders said. For the week, front-month CBOT wheat fell 27-1/2 cents per bushel or 5.3 percent. Spot K.C. wheat fell 24-3/4 cents or 5.0 percent. Spot MGEX spring wheat fell 14-1/2 cents or 2.8 percent.
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