Wheat Falls in Chicago as U.S. Report May Signal More Exports Competition
Category: Grains
(Bloomberg) – Wheat fell on speculation a U.S. government report will signal more competition in the global exports market.
Russia’s wheat-exports estimate may be increased 1 million metric tons and Australia’s by 2 million tons, Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report today. The U.S. Department of Agriculture’s report on global grain markets is set for release at 8:30 a.m. in Washington.
“The USDA is expected to increase Russia’s wheat export volume,” Fritsch wrote in the report. “Australia’s exports could also be corrected upwards.”
Wheat futures for December delivery fell 1.1 percent to $6.495 a bushel at 11:36 a.m. London time on the Chicago Board of Trade. Milling wheat for January delivery gained 0.1 percent to 187.75 euros ($256) a ton.
Russia’s wheat exports were estimated last month by the USDA at 18 million tons and Australia’s at 19 million tons.
The U.S. corn crop estimate will probably be lowered to 12.391 billion bushels, according to a Bloomberg News survey of 30 analysts. Last month’s USDA estimate was 12.433 billion bushels.
Corn for December delivery rose 0.3 percent to $6.6225 a bushel in Chicago. Soybeans for delivery in January fell 0.8 percent to $11.96 a bushel.
To contact the reporters on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net, or Tony C. Dreibus in London at tdreibus@bloomberg.net.
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
