BLBG:Wheat Declines the Most in a Week as Canada Forecasts Higher Production
Wheat fell the most in a week in Chicago after Canada, the world’s fourth-biggest exporter of the grain, predicted a 3.9 percent gain in production this year. Corn and soybeans dropped for a second day.
Canada’s wheat harvest will increase to 24.1 million metric tons, Statistics Canada said yesterday. That’s up from an Aug. 11 U.S. Department of Agriculture estimate of 21.5 million tons. The Canadian crop should make up for lost spring-wheat output in the U.S., which may fall 17 percent, said Dave Norris, a grain broker in Harrogate, England.
“StatsCanada reckons that increased wheat production there alone, compared with the latest USDA figures, will make up for America’s spring-wheat shortfall,” Norris said today in a report.
Wheat for December delivery dropped 7.25 cents, or 0.9 percent, to $7.70 a bushel by 11:11 a.m. London time on the Chicago Board of Trade. Prices slid as much as 2 percent, the most since Aug. 18, after surging 6.1 percent in three sessions through Aug. 23 on concern hot weather in the U.S. may curb the harvest in the world’s largest exporter.
Milling wheat for November delivery traded on NYSE Liffe in Paris was unchanged at 206.75 euros ($298.25) a ton.
Corn for December delivery dropped 5.25 cents, or 0.7 percent, to $7.3775 a bushel in Chicago. Soybeans for November delivery lost 6 cents, or 0.4 percent, to $13.875 a bushel.
U.S. export sales of corn and wheat probably fell in the week ended Aug. 18 from a year earlier, according to a Bloomberg News survey. The sales report is scheduled for publication today at 8:30 a.m. in Washington.
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: James Poole at jpoole4@bloomberg.net
