Wheat Extends Decline

Wheat futures fell toward the $6 per bushel mark in early January, approaching one-month lows and extending the 15% slump from 2023 amid persistent evidence of strong supply.

Data from weekly inspections by the USDA showed that 274 thousand tonnes of wheat were ready to be exported from the US, more than triple the amount of the corresponding period of the previous year.

The development magnified export forecasts from other key producers.

The latest forecasts from the USDA showed that a bumper harvest from Russia is expected to yield 90 million tonnes in the 2023/24 marketing year, close to the record-high 92 million from the earlier period, to lift available wheat for export to an all-time high of 50 million tonnes, by far the largest in the world.

Robust crops in South America also added to global supply, further lowering prices.