Front-month wheat futures on the Chicago Board of Trade fell more than 2 percent Thursday and set a fresh four-year low on technical selling coupled with ample world supplies and a strong dollar, traders said. Technical selling accelerated as CBOT December wheat fell below its previous contract low of $4.91 a bushel. Contract lows were set across the board in CBOT, K.C. and MGEX wheat.
The US dollar hit a six-year high against the yen and firmed against a basket of currencies, making US wheat less attractive to those holding other currencies. Weekly export sales were disappointing. USDA reported weekly US wheat sales at 314,500 tonnes, below trade expectations for 450,000 to 650,000 tonnes.
K.C. hard red winter wheat pressured by improving soil moisture. The weekly US Drought Monitor showed drought easing in the southern Plains, while showers forecast through the first half of next week should benefit newly planted fields. French consultancy Strategie Grains raised its estimate of the European Union's soft wheat crop for the fifth month in a row, putting it at 146.6 million tonnes, up 2.5 million from its August estimate.
Algeria bought 605,000 tonnes of milling wheat in a tender last week, a larger volume than initially thought and possibly including French wheat despite quality problems in some areas, European traders said. CME Group said it would lower the margins to trade wheat as well as corn, soybeans, soymeal and soyoil after the close.
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