Wheat Prices Fall Ahead of Northern Hemisphere Harvests

Wheat Prices Continue to Decline

Chicago wheat futures fell for a fifth consecutive day, hitting a two-week low, as traders looked past worsening U.S. crop ratings and focused on upcoming Northern Hemisphere harvests that will add new supply to the market.

Harvest Pressure and Market Outlook

"It's the harvest, and we've already factored in production losses. The fact of the matter is until we see losses in a major producer like Australia there's still plenty of wheat to go around," said Jim Gerlach, president of A/C Trading. The most actively traded contract settled 13 cents lower at $6.22-1/2 per bushel.

Corn and Soybeans Also Decline

Corn futures hit a one-month low and soybeans ticked down, pressured by falling crude oil prices. Oil dropped about 4% on reports of a potential Iran-U.S. agreement, which weighed on biofuel feedstocks.

Anticipated Chinese Purchases

Traders are also awaiting crop purchases from China. The White House stated that China will purchase at least $17 billion per year of U.S. agricultural products following the recent summit.