CBOT wheat plunges to five-year low on supply pressure
U.S. wheat futures slipped to a new five-year low on Wednesday, as a large global supply of the grain hung over markets.
Massive global supplies of wheat from recent harvests in the United States and Black Sea have flooded the market, while strong export competition and a lack of supply shortfalls have pushed prices to lows, analysts said.
Tumbling corn futures have also exerted spillover pressure on the wheat market as producers turn to lower-priced corn to feed poultry and livestock instead of wheat.
Wheat crops from central Russia are reaching ports, easing concerns about availability after poor early harvest results in southern Russia, according to traders.
Recent rainfall has boosted the outlook for harvests in Canada, Australia and Argentina, traders said.
CBOT September soft red winter wheat (WU25) rose 1/4 cent to $5.08-1/2 a bushel after hitting a five-year low of $5.04 a bushel.
K.C. September hard red winter wheat (KWU25) last traded 7 cents higher to $5.11-1/2 a bushel.
Minneapolis September spring wheat (MWEU25) settled 1-1/4 cents lower at $5.69 a bushel.
