US wheat futures fell sharply on Friday in sympathy with a broad sell-off in commodities, including limit declines in corn and soyabeans, amid fears that the financial crisis will lead to recession, traders said. The Reuters-Jefferies CRB commodity index posted its sharpest weekly loss ever as oil and other raw materials saw intensified selling.
Bearish data in USDA's October crop reports added pressure. USDA projected 2008/09 US wheat ending stocks at 601 million bushels, above an average of analysts' estimates for 558 million and up from USDA's September forecast for 574 million.
USDA raised its 2008/09 world wheat production estimate to a record 680.2 million tonnes, from 676.3 million in September. USDA upped world wheat ending stocks to 144.4 million tonnes, from 139.9 million in September. At the Chicago Board of Trade, December soft red winter wheat fell 41-1/4 cents, 6.8 percent, to close at $5.63-1/2 per bushel down 12 percent for the week.
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