US wheat futures plunged on Tuesday due to expectations for a bumper harvest of the US spring wheat crop adding to an already large stockpile of supplies amid low demand, traders said. Minneapolis Grain Exchange spring wheat futures led the decline, with the nearby contract falling 3.3 percent to its lowest close since May 2007.
Benchmark Chicago Board of Trade soft red winter wheat futures fell 2.5 percent to close at their lowest level in nine months. Good weather for harvesting the spring wheat crop in the northern US Plains weighed on the wheat market throughout the day.
MGE spring wheat for September delivery closed down 17-1/4 cents at $5.04 a bushel. CBOT September soft red winter wheat futures were down 11-3/4 cents at $4.59-1/4 a bushel. Funds sold 3,000 lots. Kansas City Board of Trade hard red winter wheat futures for September delivery dropped 10-3/4 cents to $4.94-1/4 a bushel.
Egypt's government seeks optional-origin wheat for shipment October 1-10. Dry weather still threatens Australian wheat crop. Japan seeks 127,000 tonnes of wheat via regular tender. Russia grain prices fall, market eyes interventions. Harvest of US spring wheat crop lagging average pace due to late seedings but current weather seen conducive to harvest at least through Sunday.
Yemen bought 55,000 to 60,000 tonnes of French milling wheat at $186 a tonne, European traders said. USDA late on Monday said 75 percent of the US spring wheat crop in good to excellent condition, above the 72 percent rating a week ago. Deliveries on CBOT September contract were 3,911. The biggest stopper was a Man customer taking 1,761 contracts. There were no deliveries against the KCBT September contract.