September 12, 2011

CBOT wheat drops to four-week low

CBOT wheat fell to a four-week low on September 9 amid speculation that demand for US wheat will recede as India and Russia boost exports, according to a Bloomberg report.

India, the second-largest grower, lifted a four-year ban on exports, allowing companies to ship two million tonnes, Food Minister K.V. Thomas said. Russia has stepped up sales after a drought slashed production last year.

"The focus is on the demand side of the balance sheet," Jeff McReynolds, the owner of McReynolds Marketing & Investments said. "The dollar keeps going up every day, which hurts our competitiveness."

Wheat futures for December delivery fell 8.25 cents, or 1.1%, to settle at US$7.2975 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched US$7.27, the lowest for a most-active contract since August 11. The grain declined 5.9% last week, the second straight drop.