Jan. 28 (Bloomberg) -- Wheat dropped amid concern turmoil in Egypt, the world’s biggest buyer of the grain, may weigh on demand for U.S. exports.
Egypt’s President Mohamed Mursi instituted a state of emergency in three provinces amid a fifth day of clashes that have left about 50 people dead. The weakening Egyptian pound and worsening violence have hindered the government’s ability to sell long-term debt this year, with the Finance Ministry failing to raise the amounts it sought this month.
Egypt “could be weighing on the market as violence and financial problems escalate,” Darin Newsom, an analyst at DTN, wrote in a market report today. “Turmoil in Egypt could raise doubts about increased wheat export demand from the U.S.”
Wheat for March delivery fell 0.2 percent to $7.7475 a bushel on the Chicago Board of Trade by 3:37 p.m. Paris time. Milling wheat for delivery the same month traded on NYSE Liffe in the French capital advanced 0.2 percent to 247.75 euros ($333.35) a ton.
Soybeans for March delivery slipped 0.1 percent to $14.39 a bushel and corn for delivery the same month declined 0.1 percent to $7.20 a bushel.
--With assistance from Luzi Ann Javier in Singapore and Supunnabul Suwannakij in Bangkok. Editors: John Deane, Sharon Lindores