June 10, 2010

US wheat futures extend slump to three-year low as harvest progress

Wheat fell, extending a slump to a three-year low, as the harvest progresses in the southern US Great Plains, adding to ample supplies.

About 3% of the crop was collected in the week that ended on June 6, the USDA said this week. That trailed the five-year average of 6%. Global inventories probably will jump to 198.1 million tonnes, the most since 2002, the government said.

Wheat futures for July delivery fell 4.25 cents, or 1%, to US$4.28 a bushel on the CBOT. Earlier, the price touched US$4.2625, the lowest level since April 3, 2007. The most-active contract has tumbled 30% in the past year.

Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn, soy and hay, government data show.