The Chicago Board of Trade (CBOT) March 16 Futures have been trending down in recent weeks, finishing today at 442.75 US cents per bushel, down 5.25 USc/bu overnight.
In an Australian context, March 16 wheat ended the night at $225.95 per tonne, down $2.20.
The fall followed a 10.5 USc/bu drop the day before, bringing wheat to its lowest closing price since June 2010.
Jack Scoville, vice-president of Chicago-based brokers Price Futures group, said price movements showed the market was concerned about demand.
“The European Union has a whole lot of wheat to sell, and it’s having trouble making sales,” he said.
“For wheat, the big competition has come from Europe, the European Union especially, and also a little bit from Russia.”
Mr Scoville said the price slides had been brewing for a while.
“A sharply higher crude oil market, the sharply higher stock markets have kind of reversed a little bit this week and brought some increased selling in the grains,” he said.
Mr Scoville said he expected Australian markets would follow US price movements.
“If world wheat prices are coming down, that’ll put additional pressure on Australian prices to come down as well,” he said.
“Australia’s crop turned out pretty good so that means they’re going to be competing for export sales.”
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