Markets

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

Published September 22, 2011 Updated September 22, 2011 06:38pm

1 min

By Abdul Ahad

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* 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.

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