July 29 (Bloomberg) -- Wheat futures fell to a four-year low on mounting concern that increasing global inventories will outpace demand. Soybeans and corn declined on prospects for higher yields in the U.S., the world’s biggest grower.
World wheat stockpiles before the next harvest will rise 2.9 percent to 189.54 million metric tons, the most in three years, the U.S. Department of Agriculture said this month. UkrAgroConsult boosted its forecast for Ukraine’s grain exports by 6.8 percent to 31.7 million tons.
“The international supply situation is more than adequate and will curb demand for U.S. wheat,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “The U.S. is now in the position of having to rebuild export share in a very competitive world market.”
Wheat futures for September delivery fell 2.8 percent to close at $5.20 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since July 18. Earlier, the price touched $5.185, the lowest since July 7, 2010.
Soybeans fell on speculation that dry conditions forecast for parts of the Midwest won’t be severe enough to erode yields.
Limited rain expected in the next seven days “should not be of major concern” because temperatures will be cool enough to minimize crop stress and keep moisture already in the soil from drying out, forecaster DTN said today.
The USDA said yesterday that 71% of the crop as of July 27 was in good or excellent condition, the best rating for this time of year since 1994.
Soybean futures for November delivery fell 1.2 percent to $10.95 a bushel. On July 23, the price touched $10.55, the lowest since October 2010, on prospects for a record U.S. harvest.
Corn futures for December delivery declined 1.5 percent to $3.71 a bushel. On July 24, the grain touched a four-year low of $3.6425.
--With assistance from Supunnabul Suwannakij in Bangkok and Whitney McFerron in London.