Wheat futures dropped the most in five weeks on signs that importers favor cheaper Russian grain, reducing demand for supplies from the U.S., the world’s top exporter. Egypt, the largest importer, bought 180,000 metric tons from Russia in a tender today at $261.94 and $262.50 a ton. As of July 22, U.S. soft wheat for export traded at $275.30 a ton. On July 1, Russia lifted a ban on grain shipments imposed after a drought damaged last year’s crop. “Russia is playing the game of dumping their wheat in the export market, and U.S. exports are going to struggle,” Darrell Holaday, the president of Advanced Market Concepts in Wamego, Kansas, said in a telephone interview. “At these prices, I’m not optimistic.” Wheat futures for December delivery fell 24.5 cents, or 3.3 percent, to close at $7.255 a bushel at 1:40 p.m. on the Chicago Board of Trade, the biggest drop since June 30. The most-active contract has declined 8.7 percent this year. Russia may export 20 million to 25 million tons of grain this season, Interfax reported yesterday. The country had been the world’s second-largest exporter until the most-severe drought in 50 years cut production in 2010. Wheat is the fourth-largest U.S. crop, valued at $13 billion in 2010, behind corn, soybeans and hay, government data show. To contact the reporter on this story: Brian Chappatta in Chicago at bchappatta@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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