Chicago Board of Trade wheat futures fell to a one-week low Friday on concerns about sluggish export demand for US supplies given stiff competition from Russia and a rebound in the dollar, traders said. CBOT December soft red winter what settled down 5-3/4 cents at $5.02 per bushel after dipping to $5.00-3/4, its lowest since November 1.
K.C. December hard red winter wheat ended down 9-3/4 cents at $4.87-1/2 a bushel while MGEX December soft red winter wheat fell 6-3/4 cents at $5.73-1/4. The US dollar rose, in theory making US grains less competitive globally. The currency firmed after the Federal Reserve reaffirmed its monetary tightening stance, setting up for a fourth US interest rate hike this year in December.
Russia's Agriculture Ministry said it saw 2018 wheat crop standing at 69.3 million tonnes by clean weight, the Interfax news agency reported. Brazil wheat imports are expected to increase 11 percent in 2019, to 7 million tonnes, as the country grapples with crop failures, a senior manager for commodities trading firm Bunge said. For the week, CBOT December wheat fell 6-3/4 cents or 1.3 percent, its fourth weekly decline in the last five weeks.
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