Wheat futures on the Chicago Board of Trade fell for a third straight session on Thursday, with the front-month contract hitting its lowest in nearly three months on rising estimates of world supplies and strength of the US dollar, traders said. CBOT September wheat dipped to $4.81-3/4 a bushel, the lowest spot price since June 1, before recovering to settle at $4.84-1/4, down 5-1/2 cents on the day.
CBOT September wheat also lost ground to back months on spreads. First notice day for September deliveries is Monday. K.C. hard red winter and MGEX spring wheat futures also closed lower but trailed the declines in CBOT wheat. The International Grains Council raised its forecast for 2015/16 global wheat production by 10 million tonnes to 720 million, reflecting improved outlooks in Russia, Ukraine and the European Union.
Russian consultancy SovEcon raised its forecast for Russia's 2015 grain crop by 2 million tonnes to 101 million, and raised its wheat production forecast to 61.3 million tonnes, from 59.5 million previously. Egypt's state grain buyer, the General Authority for Supply Commodities, bought 60,000 tonnes of Russian wheat in a tender for October 1-10 shipment. After Thursday's CBOT close, GASC again tendered for wheat for the same shipment period.
Australia's largest wheat producing region is likely to receive ample rains during a crucial yield-setting stage, potentially offsetting any damage from an intensifying El Nino weather event. USDA reported export sales of US wheat in the week ended August 20 at 529,100 tonnes for 2015/16, topping trade expectations.