Wheat futures on the Chicago Board of Trade sank on Monday, setting contract lows across the board as a 7 percent drop in Chinese equity markets ignited worries about the health of the global economy, traders said. K.C. hard red winter and MGEX spring wheat futures followed the weak trend, with contract lows in nearly all months at both markets.
Plentiful global wheat inventories and weak demand for US supplies added pressure, along with strength in the dollar, which makes US wheat less attractive to those holding other currencies. The USDA reported export inspections of US wheat in the latest week at 348,273 tonnes, in line with trade expectations of 200,000 to 350,000 tonnes.
Three ships due to load more than 180,000 tonnes of French wheat for Egypt were still waiting off France's northern port of Dunkirk because exporters had not received letters of credit, trade and shipping sources said. The Ethiopian government issued an international tender to purchase 70,000 tonnes of milling wheat. A cold snap that has gripped Ukraine over the last week is unlikely to affect winter crops such as grain thanks to the protection provided by a blanket of snow, analyst UkrAgroConsult said.
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