SINGAPORE — Chicago wheat futures slid more than 3 percent to a one-week low on Monday, as ample supplies from the ongoing Northern Hemisphere harvest dragged down the market.
Corn and soybeans fell about 1.3 percent on expectations of bumper US production as trading resumed after the US Independence Day holiday on Friday.
“There is general harvest pressure in the wheat market,” said Ole Houe, head of advisory services at IKON Commodities in Sydney. “US futures in particular for wheat had rallied to a level where US was uncompetitive.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 3.2 percent to $5.46-1/4 a bushel, after hitting its lowest since July 1 earlier in the session. Corn lost 1.4 percent to 4.27-1/2 a bushel and soybeans shed 1.4 percent to $10.33-3/4 a bushel.
Wheat prices are being anchored by an accelerating US winter crop harvest and big crops in the Black Sea region and western Europe.
There was additional pressure on the wheat market as Russia, the world’s No. 1 supplier, decided to cut its export tax to zero.
