Chicago Board of Trade wheat futures ended down on Wednesday, with the most active contract seeing its biggest percentage drop in 7-1/2 months as the dollar firmed and coronavirus fears dragged down broader markets, traders said.
CBOT May soft red winter wheat ended down 18-1/2 cents at $5.50-1/4 per bushel. The 3.25% drop was the steepest for a most active contract since August 12. K.C. May hard red winter wheat ended down 18 cents at $4.75 a bushel, while MGEX May spring wheat fell 14-3/4 cents to settle at $5.24-1/2.
Grains markets tumbled amid a broader market sell-off after US President Donald Trump extended coronavirus emergency measures through the end of April. The US dollar gained against multiple currencies, weakening wheat export prospects.
The US Department of Agriculture (USDA) is set to release weekly export numbers Thursday morning. Old-crop wheat export sales are expected to be 100,000 to 500,000 tonnes while new-crop sales were seen at 150,000 to 450,000 tonnes, according to analysts.
Wheat prices slumped even as demand for the grain has risen as coronavirus restrictions have boosted purchases by importers and by domestic flour millers. After the close, top importer Egypt set a tender to buy wheat from global suppliers for shipment May 5-20. Results are expected on Thursday.
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