Chicago Board of Trade wheat futures hit a two-month low on Wednesday on a larger-than-expected forecast of 2018/19 global wheat ending stocks from the US Department of Agriculture and spillover pressure from corn futures, traders said. CBOT December soft red winter wheat settled down 12 cents at $5.06-3/4 per bushel after dipping to $5.00-1/4, its lowest since July 13.
K.C. December hard red winter wheat ended down 16 cents at $5.06-3/4 a bushel and MGEX December spring wheat fell 10-1/4 cents at $5.65.
CBOT corn futures tumbled, dragging on wheat, after the USDA raised its forecast of the US corn yield to a record-high 181.3 bushels per acre, topping expectations.
The USDA in its monthly supply/demand reports raised its forecast of world 2018/19 ending stocks to 261.29 million tonnes, at the high end of a range of trade expectations.
The USDA also surprised traders by raising its estimate of Russia's 2018/19 wheat crop to 71 million tonnes, from 68 million in August.
Egypt's main state wheat buyer purchased 235,000 tonnes of Russian wheat in an international purchase tender.
Dry weather in some Russian regions is posing a risk to next year's grain crop, analysts and an industry lobby group said.
Ahead of the USDA's weekly export sales report on Thursday, analysts expected the government to report US wheat sales at 300,000 to 500,000 tonnes.