Wheat Posts Biggest Drop in Almost Two Weeks on Weather Outlook

Sep 02, 2014 4:44 pm ET

Sept. 2 (Bloomberg) -- Wheat futures posted the biggest decline in almost two weeks on speculation that favorable weather will boost crops in the U.S. and Canada, among the world’s top exporters. Soybeans rose, while corn dropped.

Conditions will be “favorably drier” for spring wheat in the northern U.S. and Canadian Prairies this month, Bethesda, Maryland-based Commodity Weather Group said today in a report. Waning northern rain probably will aid harvesting and ease crop- quality concerns, while precipitation in the U.S. Plains will aid newly seeded winter grain, Joel Widenor, a group meteorologist, said in a telephone interview.

“Yield reports out of North Dakota, South Dakota and Canada continue to be very good for spring wheat,” Alan Kluis, the president of Kluis Commodities in Wayzata, Minnesota, said in a telephone interview. “They need to get drier up there.”

Wheat futures for December delivery fell 1.5 percent to close at $5.55 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since Aug. 20.

Global production will rise to a record 713.4 million metric tons in the 2014-15 season, topping July estimates by 1.6 percent, the International Grains Council said last week, citing larger-than-expected crops in Russia, Europe and China.

Concerns eased that Ukraine exports may be disrupted, Kluis said. Russian President Vladimir Putin is seeking to calm concern over remarks that his army could “take Kiev,” a foreign policy aide told reporters. The countries will account for a fifth of global shipments this year, the USDA estimates.

Soybean futures for November delivery rose 0.8 percent to $10.32 a bushel, the largest gain since Aug. 14.

Soybean-meal futures for December delivery climbed 2.7 percent to $360 for 2,000 pounds, the biggest advance since July 16. Earlier, the price reached $362, the highest since July 17.

Corn futures for December delivery dropped 0.3 percent to $3.6375 a bushel. Earlier, the price climbed as much as 0.8 percent.

--With assistance from Whitney McFerron in London and Henry Meyer in Moscow.