Wheat futures on the Chicago Board of Trade fell on Thursday to the lowest levels in five years, pressured by a lack of export demand for US supplies amid ample world stocks, traders said. Front-month CBOT wheat dipped to $4.56 a bushel, the lowest spot price since June 2010, before paring losses. Chart-based selling noted as the contract fell below a double-bottom on a continuous price chart at $4.60.
Contract lows set virtually across the board in CBOT, K.C. hard red winter and MGEX spring wheat markets, with MGEX September matching a contract low set Tuesday. The spot K.C. wheat contract fell to its lowest level in more than eight years, since April 2007.
A stronger dollar weighed on values by making US wheat even less attractive to those holding other currencies. The dollar firmed on weekly jobless data signaling a strong US labor market. Additional pressure from Statistics Canada reporting July 31 Canadian all-wheat stocks at 7.1 million tonnes, above an average of trade estimates for 6.5 million. Egypt's main state grain buyer purchased 170,000 tonnes of Russian wheat in a tender for October 11-20 shipment. No US wheat was offered, underscoring a lack of price competitiveness.