Dec. 18 (Bloomberg) -- Wheat reached an 18-month low in Chicago on speculation that higher global stockpiles will curtail demand for U.S. grain. Soybeans and corn fell.
Global inventories before the start of Northern Hemisphere harvests in 2014 will be 182.78 million metric tons as Canadian and Australian crops increase compared with a year earlier, the U.S. Department of Agriculture said Dec. 10. That was up from 178.48 million tons predicted in November. Egypt bought 120,000 tons of cheaper Romanian and Russian wheat yesterday.
“There is a lack of urgency among global buyers, and when there are sales it is of non-U.S. origin,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “The rising global supply will continue to pressure the market.”
Wheat futures for delivery in March lost 1.1 percent to close at $6.1275 a bushel at 1:15 p.m. on the Chicago Board of Trade, capping a fifth straight retreat. Prices touched $6.12, the lowest since June 5, 2012.
The grain slumped 21 percent this year in Chicago on an outlook for expanding supply, with world production forecast to climb 8.4 percent to an all-time high of 711.4 million tons, according to the USDA.
Soybeans and corn fell, erasing gains after midday weather forecasts signaled more rain and cooler temperatures next week to boost crops in Brazil and Argentina, Dale Durchholz, the senior market analyst for AgriVisor LLC in Bloomington, Illinois, said in a telephone interview.
Soybean futures for March delivery slid 1.6 percent to $13.1375 a bushel after touching a one-week high at $13.39. It was the first drop in four sessions, leaving prices down 6.8 percent this year on a USDA forecast for production in the two South American nations to jump 8.5 percent to a record when harvesting begins in January.
Corn futures for delivery in March slipped 0.4 percent to $4.25 a bushel, extending this year’s decline to 39 percent.
--With assistance from Rudy Ruitenberg in Paris and Ranjeetha Pakiam in Kuala Lumpur. Editors: Thomas Galatola, Millie Munshi