Wheat futures on the Chicago Board of Trade fell more than 2 percent on Thursday, joining a broad sell-off in commodities as the US dollar firmed on expectations that the Federal Reserve could raise interest rates in the near term. The 19-market Thomson Reuters CoreCommodity Index fell about 0.8 percent. Plentiful global wheat supplies added to bearish sentiment. A stronger dollar makes US grains less competitive on the world market.
CBOT July wheat broke support at its 100- and 50-day moving averages and dipped to a one-week low $4.62-1/2 per bushel before settling at $4.68-3/4, down 11-1/4 cents on the day. K.C. hard red winter wheat and MGEX spring wheat futures also closed lower, following the trend.
USDA reported export sales of US wheat in the latest week at 175,200 tonnes for 2015/16, in line with trade expectations, and 573,500 tonnes for 2016/17, above expectations. Consultancy Strategie Grains lowered its forecasts for European Union soft wheat stocks in 2015/16 and 2016/17 due to higher exports and feed demand as EU prices prove competitive on world markets.