Chicago wheat futures hit a two-month low on Tuesday, pressured by improving U.S. winter wheat crop ratings, strong export competition and rising estimates of Australia’s harvest, analysts said.
Wheat futures fell as much as 3.3% in Chicago trading.
Corn and soybeans also fell following rainfall in South America during the weekend.
Chicago Board of Trade March wheat settled down 7-3/4 cents at $5.77-1/4 per bushel, after dipping to $5.74, the contract’s lowest since Oct. 2.
CBOT March corn ended down 5-1/4 cents at $4.20-3/4 a bushel and January soybeans ended down 6-1/2 cents at $11.62 a bushel.
Wheat futures retreated from early advances as traders questioned export interest in U.S. supplies.
Wheat had been on track for its fifth straight monthly gain on Friday, its longest streak in 13 years, before Monday’s retreat.
The turnaround came after Australia raised its production estimate by 8% to 31.2 million tons.
Russia, the world’s biggest wheat shipper, aims to ease its plan for curbing grain exports in 2021, with shippers saying there’s adequate supply to satisfy demand as some importing nations stockpile food.
“Essentially there is going to be no limit on Russia wheat exports on a practical basis,” Rich Nelson, chief strategist at Allendale Inc., said by phone.
Soybeans and corn futures pulled back as parts of Argentina and Brazil saw rain during last weekend with more expected this week.
Still, key growing areas of both countries are expected to remain dry, commodity analyst at Futures trade in Chicago, said in a note.
